Macroeconomic Forecast Philippines

The Philippines' real GDP growth came in at 4.9% year-on-year in Q111, slowing substantially from the 6.1% print recorded in the preceding quarter. The latest figure was in line with our core view that the Philippine economy will register a moderation in headline growth, following last year's strong performance, when the economy expanded by 7.6%. While investment-driven economic expansion will remain an important theme in 2011, especially with President Benigno Aquino III's pro-foreign direct investment initiatives, we still expect a deceleration in capital formation expansion, due to the high base in 2010.

To read the full article, please choose one of the following options: