Moody’s sees Philippine growth above 6%
manila — Moody’s Investors Service forecast that Philippine economic growth will exceed 6 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 will expand 6.5 per cent this year and 6.8 per cent in 2018, the rating company said in a statement on Friday. It cited the government’s focus on infrastructure, buoyant private sector investment and the recovery in external demand.
Moody’s also made the following comments on infrastructure, tax reform and fiscal deficit:
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 Philippines is now Morgan Stanley’s top choice in Southeast Asia.
The economy is far from overheating and there has been no over-extension of credit, Bangko Sentral ng Pilipinas Deputy Governor Diwa Guinigundo said at a briefing in Manila on Friday. The central bank is 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. The government must ensure that law enforcement and military operations comply with international human rights standards, the joint foreign business chambers said on Thursday.