Upbeat No. 29.10.14 nn No. 2120 10.30.2008
PHL expected to outperform ASEAN peers The Philippine economy's growth is projected to exceed the growth of its Association of Southeast Asian Nations (ASEAN) peers this year until next year, according to financial services group Maybank Kim Eng. Maybank projected the Philippines to grow 6.2% in 2014 and 6.3% in 2015. The bank also reported that their forecast conforms to World Bank (WB) and Asian Development Bank's (ADB) projection on the country's economy. WB sees the Philippine economy to expand 6.4% and 6.7% in 2014 and 2015, respectively while ADB expects a 6.2-% growth in 2014 and 6.4% in 2015. Knowledge Management and Information Service Makati City, Philippines Tel.: (632) 895.3611 Fax: (632) 895.6487 publications@dti.gov.ph
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The three organizations believe that it will be better in the 2nd quarter with the country's gross domestic product (GDP) growing at 6% in the first half of the year.
“(We) retain positive outlook despite recent bearish turn that has given rise to volatility and 5% decline in Philippine Stock Exchange index (PSEi) since late September,” Maybank Kim Eng Economist Luz Lorenzo noted. The local market has been vastly affected by concerns due to a slowing global economy. “However, the impact of these forces varies in different economies,” Lorenzo said. Lorenzo also mentioned that the inflation slowed to 4.4% in September from 4.9% in July and August amid a decline in the price of oil and basic food commodities. Also, fixing Metro Manila’s port congestion plays a big impact on inflation and trade. “Vigilance by the private sector keeps the issue on the top of the minds of government officials and we believe this will help prevent a recurrence of the problem,” she said. The Philippines growth is demand-driven, the banking system is healthy, the population is younger, and overall leverage is low among households and corporates. Debt ratios of the government are also declining. These are the country’s edge over its ASEAN peers, she concluded.