Philippines Economic Outlook
February 20, 2018The economy remained buoyant in the fourth quarter, with annual GDP growth decelerating only slightly from the previous quarter’s remarkable performance. Both private and public consumption expanded at faster paces than in Q3, as did fixed investment on the back of government’s ongoing infrastructure push. However, household spending may have weakened at the start of 2018, due to the entry into force of the Tax Reform for Acceleration and Inclusion (TRAIN) on 1 January. Annual growth in car sales, which were hit by higher duties, was subdued in January. Excise tax hikes were also behind the weak start to 2018 of the manufacturing sector, as shown by the weak PMI reading in January. The effects of higher taxes were, however, felt on public coffers, as suggested by the double-digit spike in year-on-year growth in tax collection recorded in January. Going forward, this should provide resources for the government’s ambitious infrastructure program.
Philippines Economic GrowthThe pace of economic expansion should remain broadly stable this year. Fixed investment will be spurred by a ramp-up in infrastructure spending and strong credit expansion. Moreover, private consumption, following an initial slowdown due to higher excise taxes, should benefit from lower income taxes and growing remittances. The main downside risks stem from a slow implementation of infrastructure projects and tighter financing conditions. Met the why particular panelists see GDP growth of 6.6% in 2018, unchanged from last month’s forecast, and 6.5% in 2019.
Philippines Economy Data
5 years of Philippines economic forecasts for more than 30 economic indicators.
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|Bond Yield||6.80||-4.11 %||Feb 22|
|Exchange Rate||51.89||0.02 %||Feb 22|
|Stock Market||8,516||0.66 %||Feb 22|
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Philippines Economic News
February 15, 2018
In December, cash remittances from Overseas Filipino Workers (OFW) reached an all-time high of USD 2.7 billion, a 7.1% increase from the same month of the previous year.
February 9, 2018
Philippine exports contracted in November, after 12 months of expansions, mainly on the back of plummeting demand from Japan and a notable decrease in overseas orders to the United States and China, which more than offset stronger demand from Hong Kong and Singapore.
February 8, 2018
At its meeting on 8 February, the Central Bank of the Philippines (BSP) decided to leave the Overnight Reverse Repurchase Facility (RRP) rate unchanged at 3.0%.
February 6, 2018
In January, consumer prices increased 1.0% compared to the previous month, notably above December’s 0.3% month-on-month growth and a multi-year high.
February 1, 2018
The manufacturing Purchasing Managers’ Index (PMI) declined to 51.7 in January, significantly down from 54.2 in December according to a release provided by Nikkei and IHS Markit.