Upbeat
No. 10.25.13 No. 2120 10.30.2008
ADB, Fitch, S&P raise PHL growth forecast Three global financial institutions -- Asian Development Bank (ADB), Fitch Ratings Inc. (Fitch), and Standard & Poor’s (S&P) -- upgraded the Philippines’ economic growth forecast for 2013 and 2014. The ADB hiked its 2013 gross domestic product (GDP) growth forecast for the country to 7% from the 6% announced in April, while S&P, to 7.1% from the 6.9% made in July. S&P sees the Philippines, along with other Asia Pacific economies, to have the highest growth in the world after the 2008 global financial crisis. “We see some scope for a stronger-than-expected Information Center pickup in U.S. growth should fiscal policy become more Makati City, Philippines Tel.: (632) 895.3611 predictable and less restrictive, and the personal Fax: (632) 895.6487 publications@dti.gov.ph consumption rebound gathers additional momentum,” Copies available S&P said in its report. upon request. T rade and Industry
The higher forecast for the country was made on the back of its higher economic growth seen in the second quarter, S&P Asia-Pacific Chief Economist Paul Gruenwald said. The country's GDP grew 7.5% in the second quarter, boosting the first semester growth to 7.6% from 6.4% in the first half of 2012. Meanwhile, Fitch revised the Philippines' 2013 GDP growth forecast to 6.2% from 5.5% made in December last year. “Fitch has made a substantial upward revision to its 2013 growth forecast for the Philippines, reflecting a pick-up in investment spending and support from resilient remittance inflows,” Fitch Ratings said. The ADB is positive that the steady flow of investments would support the country’s economic growth as evidenced by positive business sentiment and growth in credit. It also added that business expectations for the fourth quarter were optimistic on the back of benign inflation and low interest rates. Further, consistent with expectations, overseas Filipino remittances are expected to increase in the fourth quarter. In addition to the hike in GDP forecast for the country, the investment upgrades it got from the three biggest credit rating agencies -- Fitch, S&P, and Moody's -- will continue to make the Philippines an attractive investment target.