MANILA, Philippines - Singapore's DBS raised its growth forecast for the Philippines for 2013 and 2014, after the "better-than-expected" second quarter data.
"On the back of better-than-expected 2Q (second quarter) GDP numbers, we have revised up our 2013 and 2014 GDP forecasts to 7.0% and 6.7%, respectively," DBS said in a research note.
DBS noted that the 7.5% year-on-year GDP was unchanged from the previous quarter, "despite significant external headwinds."
Earlier, DBS forecast the Philippine economy to grow by 6.4% in 2013 and 6% in 2014.
"Notably, the Philippine economy is once again the fastest growing in Southeast Asia. The growth momentum is likely to be maintained in the coming quarters amid a conducive domestic economic environment," DBS said.
In the second quarter, the Philippines' 7.5% growth was the same as China, and considered the fastest in Southeast Asia.
The government is targeting 6-7% growth this year. Next year, the target is 6.5-7.5% growth.