Moody’s: Phl economy likely up by 6.6% in Q2

The Philippine economy likely grew slower at 6.6 percent in the second quarter of the year amid rising inflation, according to Moody’s Analytics

“GDP (gross domestic product) growth in the Philippines likely softened a little,” Moody’s Analytics said in its Asia Pacific Economic Preview released on Friday.

It noted that “rising price pressures will need watching.”

Its forecast of 6.6 percent in the second quarter compares with 6.8 percent output growth registered in the first three months of the year the government’s forecast of 7 to 8 percent for the year.

“Headline inflation is at a five-year high and is well above Bangko Sentral ng Pilipinas’ target band of 2 percent to 4 percent, which has prompted two policy rate hikes this year,” according to Moody’s Analytics, a subsidiary of Moody’s Corp. and sister company of debt watcher Moody’s Investors Service.

The Philippine Statistics Authority is scheduled to report on the country’s second quarter economic performance on August 9.

Moody's Analytics said consumer spending is healthy, thanks to steady inflows of overseas worker remittances and a firm labor market.

“Investment has been robust and is likely to remain strong, as the government boosts infrastructure development. External demand has remained solid,” it said.