MANILA, Philippines - The Philippine economy is expected to sustain its strong growth next year and remain as one of the world’s fastest growing economies, Moody’s Analytics said yesterday.
“The Philippines continues to outperform and will remain one of the world’s fastest growing economies in 2014,” senior economist Glenn Levine said in a report titled Asia Pacific Outlook 2014: Realizing Potential.
“Confidence is high, and investment, both public and private, is driving the economy forward. Demand should rebound quickly after Typhoon Haiyan,” he continued.
The Philippine economy expanded by 7.4 percent in the first nine months of the year, faster than the government’s six to seven percent target for the year.
The growth was attributed to strong consumer demand that continues to make up the bulk of the country’s gross domestic product (gdp), government spending, and rising investments.
Although the government and economists forecast a dip in economic output in the fourth quarter following the devastation caused by Super Typhoon Yolanda and other recent calamities, rebuilding efforts in early 2014 are expected to prop up the economy.
Thus, growth is expected to remain within the government’s target of a 6.5 to 7.5 percent range next year.
Levine said the Philippine economy’s performance will be in line with the region’s performance as global demand picks up.
“The Asia Pacific region enters 2014 growing solidly with a mild tailwind from growing global demand. The global and regional economies are on a slow cyclical upturn and downside risks are receding,” Levine said.
“Next year should be better than 2013, with most national economies growing near or at potential rates by year’s end,” he continued.
“Yet there are reasons to believe 2014 will be better. The OECD (Organization for Economic Cooperation and Development) leading indicator of economic activity is accelerating, suggesting that developed world GDP will improve in the coming quarters,” Levine said.