Barclays upgrades 2012 PHL economic growth forecast to 5.5% 

Barclays Capital Ltd. on Thursday said Philippine output would likely grow 5.5 percent this year because of the surprising 6.4-percent growth in the first quarter.

 

The London-based investment bank revised its forecast on PHL gross domestic product from 4.2 percent, because of the first quarter results, said Barclays analyst Prakriti Sofat.

 

“Given the strong first quarter GDP print and taking into account increased risks to global growth, we are raising our 2012 GDP growth forecast to 5.5 percent from 4.2 percent,” Sofat noted.

 

“Philippines GDP expanded by 6.4 percent year-on-year in the first quarter, much stronger than expected and compared with an upwardly revised four percent in the fourth quarter,” she said.

 

The first quarter results were backed by solid consumer spending, a turnaround in exports, and increased government spending, the Barclays analyst noted. —VS, GMA News