DBS Bank of Singapore kept its 2017 growth forecast for the Philippines at 6.4 percent, after the economy grew 6.5 percent in the second quarter.
“Second-quarter GDP growth came in at 6.5 percent, better than our forecast of 6.2 percent. Government consumption was up 7.1 percent in the quarter, a healthy rebound from a mere 0.1 percent in the first quarter,” the bank said.
Export growth also came in strong at 19.7 percent, just off the multi-year high of 20.3 percent in the preceding quarter. Strong expansion was also seen in both the agriculture and manufacturing sectors (6.3 percent and 7.9 percent, respectively).
DBS said investment growth eased to 9.4 percent in the second quarter, a fairly strong print, but soft when compared to the average 20 percent between March 2015 and March 2017. “While it is clear to us that investment growth cannot be sustained at 20 percent annual pace, the moderation ahead may turn out to be steeper than previously thought. Inventory drawdown has continued and likely to gain momentum going forward, even if the government is committed on its infrastructure overhaul,” it said.
