Philippines Economic Outlook
July 17, 2018The latest indicators suggest that the economy grew robustly in the second quarter, supported by fiscal stimulus measures. The average manufacturing PMI readings for Q2 exceeded the average recorded in the previous quarter. Furthermore, the sector’s strong momentum should carry into Q3, as client demand in June improved notably, and business expectations relating to future output were high. Furthermore, growth in retail sales quickened in May, supported by higher disposable incomes and elevated consumer confidence in Q2. Buoyant domestic economic activity, however, is weakening the country’s external position. The trade deficit unexpectedly widened in May due to surging imports of capital goods linked to construction of public infrastructure. Similarly, the government announced in early July it plans to exceed the fiscal deficit target of 3.0% for 2019 by 0.2 percentage points to ramp up public spending. Widening fiscal and trade deficits will increase the country’s exposure to economic shocks amid heightened financial volatility and fears of a global trade war.
Philippines Economic GrowthThe economy is expected to grow at a brisk pace this year and next on the back of elevated public spending and fixed investment. Fiscal stimulus, however, is causing economic imbalances to build up and stoking fears that the economy might overheat. Met the why particular panelists see GDP growth of 6.7% in 2018, unchanged from last month’s forecast, and 6.6% in 2019.
Philippines Economy Data
5 years of Philippines economic forecasts for more than 30 economic indicators.
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|Bond Yield||6.41||-4.11 %||Jul 17|
|Exchange Rate||53.43||0.02 %||Jul 17|
|Stock Market||7,382||0.66 %||Jul 17|
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Philippines Economic News
July 16, 2018
In May, cash remittances from Overseas Filipino Workers (OFW) reached USD 2.5 billion, a 6.9% expansion from the same month of the previous year.
July 5, 2018
In May, consumer prices rose 0.6% compared to the previous month, coming in above the flat reading reported in May.
July 3, 2018
The manufacturing Purchasing Managers’ Index (PMI) dropped from 53.7 in May to 52.9 in June, according to a release provided by Nikkei and IHS Markit.
June 20, 2018
At its meeting held on 20 June, the Central Bank of the Philippines (BSP) decided to raise the Overnight Reverse Repurchase Facility (RRP) from 3.25% to 3.50%.
June 18, 2018
In April, cash remittances from Overseas Filipino Workers (OFW) reached USD 2.3 billion, a 12.7% expansion from the same month of the previous year.