Macroeconomic Forecast Philippines

We have downgraded our real GDP forecast for the Philippines from 5.3% to 5.1% of the back of the ongoing MENA crisis and earthquake in Japan. Indeed, Japan is a key export destination for the Philippines and we believe that consumer goods demand from the disaster-hit country will slow. Moreover, Japanese direct investment into the country should also be hit for the year. Regarding the MENA situation, we have also moderated our expectation for remittance growth as the crisis is expected to persist in the coming months.

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