Philippine economy to grow up to 7.5% in 2014

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ManilaThe Philippines’ First Metro Investment Corporation (FMIC), the investment banking arm of the Metrobank Group, said the Philippine economy is expected to continue its strong performance in 2014. ABS-CBN reported.

FMIC forecasts a 7 to 7.5 per cent growth of the country’s GDP, well within the government’s growth target of 6.5 to 7.5 per cent.

“The country has shown resilience, we are still the best performing economy in ASEAN with a 7.4 per cent GDP growth in the first nine months of 2013. Our fundamentals remain intact and will be able to withstand volatilities in 2014, be it domestic or global,” FMIC chairman Francisco Sebastian said in a briefing on January 6.

The reconstruction and rehabilitation efforts in areas affected by typhoon Yolanda in November 2013 will be one of the drivers in the economy’s growth. The government is spending an estimated $8.2 billion until 2016 for the rehabilitation work, $2.3 billion of which will be spent in 2014.

The forecast is attainable despite a possible 2 per cent drop in the agricultural sector due to the 2013 calamities, FMIC said. The recovery of US and Japan, and lower soft crude prices in Iran, US and China may boost the economy.

FMIC also expects inflation to remain manageable at 3.8 to 4 per cent in 2014, which is within the Philippine Central Bank’s target of 3 to 5 per cent. FMIC noted that while inflation is likely to continue its upward movement in the early part of 2014, it is anticipated to decelerate before the year ends.

Remittances from overseas Filipino workers (OFW) are also projected to increase 6 to 7 per cent in 2014 as more OFWs are expected to send money to those affected by the typhoon.

The Philippine peso, meanwhile, is seen to average at 43 and 46 against the US dollar in 2014, while a 6 to 10 per cent jump is seen at the country’s exports due to US recovery and China’s steady growth. Imports, on the other hand, are projected to grow between 8 and 12 per cent.

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Reading Time: 2 minutes

The Philippines’ First Metro Investment Corporation (FMIC), the investment banking arm of the Metrobank Group, said the Philippine economy is expected to continue its strong performance in 2014. ABS-CBN reported.

Reading Time: 2 minutes

ManilaThe Philippines’ First Metro Investment Corporation (FMIC), the investment banking arm of the Metrobank Group, said the Philippine economy is expected to continue its strong performance in 2014. ABS-CBN reported.

FMIC forecasts a 7 to 7.5 per cent growth of the country’s GDP, well within the government’s growth target of 6.5 to 7.5 per cent.

“The country has shown resilience, we are still the best performing economy in ASEAN with a 7.4 per cent GDP growth in the first nine months of 2013. Our fundamentals remain intact and will be able to withstand volatilities in 2014, be it domestic or global,” FMIC chairman Francisco Sebastian said in a briefing on January 6.

The reconstruction and rehabilitation efforts in areas affected by typhoon Yolanda in November 2013 will be one of the drivers in the economy’s growth. The government is spending an estimated $8.2 billion until 2016 for the rehabilitation work, $2.3 billion of which will be spent in 2014.

The forecast is attainable despite a possible 2 per cent drop in the agricultural sector due to the 2013 calamities, FMIC said. The recovery of US and Japan, and lower soft crude prices in Iran, US and China may boost the economy.

FMIC also expects inflation to remain manageable at 3.8 to 4 per cent in 2014, which is within the Philippine Central Bank’s target of 3 to 5 per cent. FMIC noted that while inflation is likely to continue its upward movement in the early part of 2014, it is anticipated to decelerate before the year ends.

Remittances from overseas Filipino workers (OFW) are also projected to increase 6 to 7 per cent in 2014 as more OFWs are expected to send money to those affected by the typhoon.

The Philippine peso, meanwhile, is seen to average at 43 and 46 against the US dollar in 2014, while a 6 to 10 per cent jump is seen at the country’s exports due to US recovery and China’s steady growth. Imports, on the other hand, are projected to grow between 8 and 12 per cent.

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