The Philippines received yet another positive economic growth forecast from renowned credit rating agency Moody’s Analytics due to a bullish second quarter.
Glenn Levine, Senior Economist at Moody’s Analytics, said the performance of this year’s second quarter reinforces the possibility for the 2014 gross domestic product (GDP) to reach 6.2 percent. Exports and solid demand from consumers were cited as key growth drivers. However, Moody’s said public underspending could result to sluggish growth next year.
The 6.4 percent performance of this year’s second quarter outpaced the tapered and revised 5.6 percent posted by the first quarter. Then again, 2014 Q2’s 6.4 percent is still lower compared to 2013 Q2’s 7.9 percent.
The average GDP during the first six months of 2014 is six percent, which is lower than the 7.2 percent posted in the same period last year. GDP growth targets are set at 6.5-7.5 percent this year.
Levine said GDP expansion could drop to 5.8 percent this year coming from the impressive 6.8 percent in 2012 and 7.2 percent in 2013 due to the continuous uncertainty throughout Asia-Pacific.
According to data from Moody’s Analytics, Southeast Asian economies are seen to expand by 4.3 percent in 2014, which is marginally lower than the trending five percent.
In another report created by Fred Gibson, one of Moody’s Analytics’ economists, the Philippines has already recovered from the devastating effects of super typhoon Haiyan.