‘Philip­pine eco­nomic growth to ex­ceed 6pc‘

New Straits Times - - Business / World -

MANILA: Moody’s In­vestors Ser­vice fore­cast that Philip­pine eco­nomic growth will ex­ceed six per cent un­til next year, and said the con­flict in the south and a deadly drug war pose a ris­ing risk but is un­likely to de­rail the econ­omy.

Gross do­mes­tic prod­uct would ex­pand 6.5 per cent this year and 6.8 per cent next year, said Moody’s in a state­ment yes­ter­day. It cited the gov­ern­ment’s fo­cus on in­fra­struc­ture, buoy­ant pri­vate sec­tor in­vest­ment and the re­cov­ery in ex­ter­nal de­mand.

Moody’s af­fir­ma­tion of its strong growth out­look un­der­scores the suc­cess of Pres­i­dent Ro­drigo Duterte in re­tain­ing con­fi­dence in the econ­omy.

Philip­pine stocks surged to a record on Thurs­day, and the coun­try is now Mor­gan Stan­ley’s top choice in South­east Asia.

The econ­omy was far from over­heat­ing and there had been no over-ex­ten­sion of credit, said Bangko Sen­tral ng Pilip­inas deputy gov­er­nor Diwa Guini­gundo at a brief­ing, here, yes­ter­day.

The cen­tral bank was re­view­ing bal­ance of pay­ments and cur­rent ac­count pro­jec­tions for the year, he said.

Moody’s com­ments on po­lit­i­cal risk echo con­cerns raised by some busi­ness groups.

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