MANILA, Philippines – The Philippine economy could have expanded at a faster pace in the second quarter compared to the 5.7 percent growth in the first quarter, several international banks said.
According to UK-based Barclays, the Philippine economy could have expanded by 6.7 percent from April to June this year.
“Ongoing strength in private consumption, investment along with an inventory rebound should take growth higher,” Barclays said in its Emerging Markets Weekly report.
Singapore-based DBS Bank, however, projected a slower growth forecast for the Philippines. DBS said the country’s economy may have grown 6.3 percent in the second quarter.
“Data released in the past week certainly points to a faster GDP growth in 2Q14 from the previous quarter. Export growth, which has been disappointing so far this year, came in strong at over 20 percent year-on-year in June,” DBS said in its Daily Breakfast Spread.
“Note that strong manufacturing was one key factor that led to the 7.2 percent GDP growth in 2013. Another year of strong manufacturing sector is still on the cards this year, if export growth were to sustain its current trend,” it added.
Moody’s Analytics, meanwhile, said the Philippine economic growth may have hit 6.2 percent.
“High-frequency economic data have all been pointing in the right direction. Industrial production is growing in the double digits again, and exports and imports have improved,” the research firm said.
“We expect GDP growth to be slightly below trend, but reconstruction work could push the economy towards trend in the second half,” it added.
The Philippine Statistics Authority is set to release the official second quarter gross domestic product data on Thursday, August 28.
The disappointing 5.7 percent economic growth in the first quarter was attributed to the lingering effects of typhoons that hit the country in 2013, which resulted to billions of pesos worth of damages in infrastructure and agriculture.
The government has kept its 6.5 to 7.5 percent growth target for the full year driven by reconstruction efforts in the affected areas.