Philippines Economic Outlook
April 24, 2018Economic activity remained buoyant in the first quarter, supported by strong infrastructure expenditure and resilient consumer spending. Fiscal expenditure jumped over a fourth in January and February, and in the same period bank lending for productive activities and household consumption expanded almost 20%, a signal of the economy’s overall good health. However, the effects of sales tax hikes from the Tax Reform for Acceleration and Inclusion (TRAIN) weighed on the manufacturing sector. The first-quarter average PMI fell to its lowest level in two years on lower new orders. That said, in January and February retail sales expanded robustly, although the effects of the tax reform were also felt by consumers: Consumer confidence declined in Q1, potentially hitting the outlook for coming quarters. The external sector also showed some weakness, as merchandise exports performed poorly in the first two months of the year.
Philippines Economic GrowthSolid household spending on the back of rising remittances and favorable financing conditions will continue to drive growth this year. Moreover, the government’s investment push will spur infrastructure spending. However, sustained inflation risks hitting consumer spending, although gains from lower income taxes could act in the opposite direction. The main downside risks to growth are cooling demand from China and further potential capital outflows due to the Fed’s tightening cycle. Met the why particular panelists see GDP growth of 6.6% in 2018, unchanged from last month, and also 6.6% in 2019.
Philippines Economy Data
5 years of Philippines economic forecasts for more than 30 economic indicators.
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
|Bond Yield||6.55||-4.11 %||May 16|
|Exchange Rate||52.24||0.02 %||May 16|
|Stock Market||7,870||0.66 %||May 16|
Start Your Free Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
Philippines Economic News
May 15, 2018
In March, cash remittances from Overseas Filipino Workers (OFW) reached USD 2.4 billion, a steep 9.8% contraction from the same month of the previous year.
May 11, 2018
Philippine exports contracted 8.2% in annual terms in March, coming in below February’s 5.5% drop.
May 7, 2018
In April, consumer prices rose 0.5% compared to the previous month, matching the 0.5% month-on-month rise recorded in March.
May 2, 2018
The manufacturing Purchasing Managers’ Index (PMI) rose to 52.7 in April, up from 51.5 in March, according to a release provided by Nikkei and IHS Markit.
April 20, 2018
In February, cash remittances from Overseas Filipino Workers (OFW) reached USD 2.3 billion, a 4.5% increase from the same month of the previous year.