DBS Bank of Singapore expects the Philippine economy to grow 6 percent in 2016, faster than the 5.8-percent expansion last year on robust domestic demand and investments.
DBS Group Research economist Gundy Cahyadi said in a statement Thursday there was nothing to worry about the Philippine economy, despite the sluggish exports.
“Export growth number out this week was bleak. That export growth is weak shouldn’t be surprising though. The global economy is not growing as fast as many had thought earlier—look at how the growth numbers are down for the key export destinations,” Cahyadi said.
“Yet, as far as GDP growth momentum is concerned, we are not worried at all. Most of what’s driving the economy comes from domestic demand. As long as consumption and investment growth stays strong, we remain optimistic that GDP growth will return to 6 percent this year,” Cahyadi said.
He said the strong growth of 6.3 percent in the fourth quarter of 2015 could be sustained in the first quarter this year. A 6.3-percent growth in the first quarter could be higher than 5 percent a year ago, which was driven by anemic fiscal expenditures, he said.