British banking company HSBC has forecasted the Philippine economy to stand out from other Asian nations as it is expected to maintain a 6.5 per cent gross domestic product (GDP) growth.
“The Philippines continues to stand out as one of Asia’s strongest performers. Despite an uncertain external environment and weak regional growth, the economy expanded by 7.1% year-on-year in Q3 2016, the fastest pace in almost 3 years and placing the government’s 6-7% growth target for 2016 well within reach,” said HSBC economist Joseph Incalcaterra in the HSBC Asian Economics Quarterly Report for Q1 2017 released on Thursday, January 12.
The average GDP growth for Asia, excluding Japan, was projected at 5.8 percent for 2017. The forecast growth for the Philippines is the same as HSBC’s growth projection for China.
Incalcaterra cited private consumption and investment as the main reasons for the optimistic Philippine outlook, noting that consumption grew 7.3% in Q3 2016, fueled by strong remittances and more local jobs in outsourcing, tourism, and construction.
On the financial front, HSBC said monetary policy remains fairly adequate after the Bangko Sentral ng Pilipinas (BSP) set an interest rate corridor last year. In recent months, auction volumes have increased to P180 billon from the P30 billion seen last June.
