by: Sarah Joson
Tuesday, January 13, 2015 |
According to Fitch Ratings, the Philippines will retain its post as one of the bullish countries within Asia even though official growth targets are not achieved.
In an email response to BusinessWorld, Sagarika Chandra, Associate Director for Asia-Pacific Sovereigns at Fitch Ratings, said the growth forecast for the Philippines is 6.2 percent this year, and 6.0 percent next year as the country faces a steady inflow of remittances from overseas Filipino workers and bullish performance of the outsourcing sector. The local government’s gross domestic product (GDP) growth estimate for the country is 7-8 percent. Chandra’s estimates are clearly lower than this forecast for 2015 and 2016.
This year, the Philippines’ growth is faster than emerging Asian countries, sans China - all of which are expected to post a growth average of 6.0 percent. However, for 2016, growth will be identical throughout the region.
The credit rating agency is also reviewing its GDP growth assessment for 2014. Fitch Ratings head for Asia-Pacific Sovereigns Andrew Colquhoun said the Philippines could face a lower outlook since the figures posted by the country are below the official 6.5-7.5% growth target range for 2014 due to the slower-than-expected economic growth in the third quarter.
The country posted a 5.8 percent GDP growth during the first nine months of 2014, wherein only a 5.3 percent growth was seen during the third quarter.
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