‘Philippine economic growth to exceed 6pc‘
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.