Moody’s sees 6.7% GDP growth for PH in Q4 ’17

By , on January 21, 2018


Shutterstock photo
In a research note, the economic research subsidiary of Moody’s Corp. identified domestic demand as the main growth driver (Shutterstock photo)

MANILA — Moody’s Analytics projects a 6.7 percent output for the Philippine economy in the last quarter of 2017.

This level is lower than the 6.9 percent growth, as measured by Gross Domestic Product (GDP), that the economy registered in the third quarter of 2017 but similar to the average output in the first three quarters of the year.

In a research note, the economic research subsidiary of Moody’s Corp. identified domestic demand as the main growth driver.

It also considers exports as additional factor for domestic expansion due “to strong demand for electronics and components.”

Other plus factors are consumer spending, which is backed by remittances from Filipino workers overseas and the strong labor market, and investments in line with the government’s infrastructure projects.

“The Duterte administration plans to spend PHP8 trillion to PHP9 trillion on infrastructure to 2022. Those plans got a boost late last year with the passage of the first tax reform bill, as it will help fund the ambitious infrastructure plans,” it added.

The government will release the fourth quarter and full year 2017 GDP report on Tuesday, Jan. 23.