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Fitch hikes PHL's 2013 growth outlook
By SIEGFRID O. ALEGADO, GMA News
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(Updated 6:49 p.m.) Fitch Ratings Services on Thursday upgraded its Philippine growth forecast for this year even as it slashed most of emerging Asia's projection.
In its report, “Emerging Asia: Slowing Growth Amid Market Pressures,” Fitch revised its outlook for the Philippines to 6.2 percent from its earlier 5.5 percent.
Fitch said the revised outlook reflects a “pick-up in investment spending and support from resilient remittance inflows.”
“The Philippines' current account has stayed solidly in surplus, underpinned by remittance inflows,” the report read.
The new forecast now falls within the Philippine government’s 6 to 7 percent growth goal for this year, but pales in comparison with 2012’s actual 6.8 percent growth.
Fitch was the first of the three major global debt-watchers to lift the Philippines from junk status to investment grade in March.
In a briefing Thursday, Budget Secretary Florencio Abad said the government is still working on improving the economy and the country’s debt dynamics.
“I think comfortably we should be able to stay win our committed debt-to-GDP [gross domestic product],” he said.
The country's debt-to-GDP ratio — a measure used by debt watchers to assess the creditworthiness of governments — stood at 49.5 percent as of end-June, lower than the 50.6 percent recorded in the same period in 2012.
The Philippines was the only country in emerging Asia whose outlook was revised upward.
Forecasts for China, India, Indonesia, Mongolia, Sri Lanka, Thailand and Vietnam were cut by Fitch, while its projection for Malaysia was maintained.
As such, Fitch has revised down its projection for Emerging Asian growth to 5.7 percent for 2013 from 6.4 percent.
In slashing its growth forecast for the rest of emerging Asia, Fitch said the impending hike in global interest rates and low commodity prices would weigh on their economic prospects.
"The region faces headwinds... particularly through commodity prices, and from tighter global funding conditions ahead of Fed tapering. But Emerging Asia is a relatively fast-growing region and the direct negative impact on ratings is limited," it said.
“Fitch believes the main factors weighing on growth are likely to be long-lasting, implying a structural downshift in growth expectations,” it added.
The Philippine economy grew by 7.6 percent in the first half, the fastest in Southeast Asia and on the same pace with China. — BM, GMA News
In its report, “Emerging Asia: Slowing Growth Amid Market Pressures,” Fitch revised its outlook for the Philippines to 6.2 percent from its earlier 5.5 percent.
Fitch said the revised outlook reflects a “pick-up in investment spending and support from resilient remittance inflows.”
“The Philippines' current account has stayed solidly in surplus, underpinned by remittance inflows,” the report read.
The new forecast now falls within the Philippine government’s 6 to 7 percent growth goal for this year, but pales in comparison with 2012’s actual 6.8 percent growth.
Fitch was the first of the three major global debt-watchers to lift the Philippines from junk status to investment grade in March.
In a briefing Thursday, Budget Secretary Florencio Abad said the government is still working on improving the economy and the country’s debt dynamics.
“I think comfortably we should be able to stay win our committed debt-to-GDP [gross domestic product],” he said.
The country's debt-to-GDP ratio — a measure used by debt watchers to assess the creditworthiness of governments — stood at 49.5 percent as of end-June, lower than the 50.6 percent recorded in the same period in 2012.
The Philippines was the only country in emerging Asia whose outlook was revised upward.
Forecasts for China, India, Indonesia, Mongolia, Sri Lanka, Thailand and Vietnam were cut by Fitch, while its projection for Malaysia was maintained.
As such, Fitch has revised down its projection for Emerging Asian growth to 5.7 percent for 2013 from 6.4 percent.
In slashing its growth forecast for the rest of emerging Asia, Fitch said the impending hike in global interest rates and low commodity prices would weigh on their economic prospects.
"The region faces headwinds... particularly through commodity prices, and from tighter global funding conditions ahead of Fed tapering. But Emerging Asia is a relatively fast-growing region and the direct negative impact on ratings is limited," it said.
“Fitch believes the main factors weighing on growth are likely to be long-lasting, implying a structural downshift in growth expectations,” it added.
The Philippine economy grew by 7.6 percent in the first half, the fastest in Southeast Asia and on the same pace with China. — BM, GMA News
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