PHL sees 'fairly strong' second quarter growth

The Philippine expects a strong economy in the second quarter on the back of robust domestic demand and a continued uptick in manufacturing and investments, a Cabinet official said Monday. 

 

“I think it's going to be robust or fairly strong for the second quarter. So far, the indicators are positive,” Socioeconomic Planning Secretary Arsenio Balisacan told reporters at the sidelines of the Philippine Human Development Report's Launch when asked for projections on the gross domestic product (GDP) in April to June. 

 

Balisacan, who is also National Economic and Development Authority (NEDA) director general, refused to give a ballpark figure. 

 

Asked to comment on the First Metro Investment Corp. and University of Asia and the Pacific's  second quarter growth forecast of at least 7.5 percent, the Philippines' chief economist said, “It's within the range of possibilities.” 

 

The economy grew by 7.8 percent in the first quarter. 

 

Balisacan said overseas Filipino remittances—which grew at an annual rate of 6.4 percent or above the Bangko Sentral ng Pilipinas's 5 percent growth forecast in the January to May—will fuel domestic demand.

 

Moreover, the Cabinet secretary noted private sector investments “will still drive the second quarter. The pace of expansion in investments in the last two quarters will continue,” he added. 

 

The upsurge in manufacturing output as well as continued confidence of the business sector will also provide support for the economy, he added. 

 

In a separate telephone interview, Bank of the Philippine Islands (BPI) chief economist Emilio Neri Jr. said growth in the second quarter “will still outperform despite a slight easing.”

 

BPI's base case scenario is a 7 percent growth in April to June. 

 

“Our main reason for the slower projection [than first quarter growth] is the financial market volatility affecting spending behavior of consumers aside from the fact that some sectors were also affected,” said Neri. 

 

The US Federal Reserve's heralding of easing stimulus measures blemished the appeal of emerging economies like the Philippines that prompted massive sell-offs in the financial markets around the world. — VS, GMA News