Philippines: HSBC, S&P see robust Philippine GDP growth in 2 years – 22 Jun 2017

  • The Hong Kong and Shanghai Banking Corp. Ltd and S&P Global Ratings expect a healthy economic expansion for the Philippines in the next two years despite the diplomatic crisis in the Middle East and the terrorist attack in Marawi City.
  • According to Fan Cheuk Wan, managing director and head of investment strategy and advisory for Asia at HSBC, imports would continue to outpace export growth which could result in current account deficit for 2017. HSBC expects imports to grow 11.4% while exports are projected to rise at a slower pace of 6.5%.
  • Economic managers decided to keep its GDP growth target at a range of 6.5 – 7.5% for 2017 despite slower growth in 1Q17.
  • HSBC sees inflation accelerating to 3.6% for 2017, double the 1.8% average recorded in 2016 due to higher infrastructure spending by the government and the Bangko Sentral ng Pilipinas (BSP) keeping its accommodative monetary policy stance in 2017 due to the benign inflation environment.
  • In its latest Asia Pacific economic snapshots, S&P expects a 6.6% growth for the Philippines in 2017 and 6.4% in 2018. The rating agency sees inflation rising to 3.1% for 2017 and 3.6% for 2018 from 1.8% due to higher increments for food and non-food items.

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