MANILA — Investment bank First Metro Investment Corp. (FMIC) and the University of Asia & the Pacific (UA&P) said a surge in Philippine exports in the fourth quarter of 2017 will bring the country’s Gross Domestic Product (GDP) growth within government goals for this year.
In the latest issue of The Market Call, FMIC and UA&P said the export sector would be bolstered by expanding US economy; and European Union, Japan and China growing above expectations.
The report said exports, along with expansion in domestic demand, would further fuel the Philippine economic growth.
It noted national government (NG) infrastructure, capital goods and consumer spending should pick up further.
FMIC and UA&P said higher overseas Filipino workers (OFW) remittances, especially scaled in pesos, provide much spending power to consumers, and should continue to rise double-digit for the rest of the year.
“The strength of the U.S. economy and its financial markets will continue to put pressure on the peso. We may have a little respite in November and December when OFWs bring home more U.S. dollars,” they said.
The GDP, the total value of all the goods and services produced in the country, grew 6.9 percent in the third quarter, bringing the January to September average at 6.7 percent.
The economic growth topped market expectations in July to September quarter on strong growth in exports and public spending.
The government’s 2017 growth target for this year is between 6.5-7.5 percent.