PH growth still below potential: economist


Posted at Nov 21 2017 06:39 PM

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MANILA - Despite Philippines' rapid economic expansion, the country is not at risk of "overheating" as it is still growing below its potential, an economist from one of the largest banks in Southeast Asia said Tuesday. 

"The way we see it, overheating is not a very high level of concern right now," said Suhaimi Ilias, regional economist at Maybank.

Ilias however told ANC's Market Edge that they expect Bangko Sentral ng Pilipinas to hike interest rates next year by up to 50 basis points.

"In this environment, where global interest rates are rising, they probably need to raise interest rates but modestly, to make sure that they can provide some stability to certain aspects of the economy, like the currency for example." 

Ilias also said that the widening current account deficit is actually good as it will support long term economic activities. 

He added that they see Philippines growing 6.8 percent this year, which would accelerate to 7 percent next year as the government ramps up infrastructure spending.