HSBC sees PH economy standing out in 2017

Global financial HSBC sees the Philippine economy leading Asia in economic growth for 2017 in comparison to its neighbors.

IMAGE GRABBED FROM Wikimedia Commons

In their recent Asian Economics Quarterly Report (Q1 2017), HSBC economist Joseph Incalcaterra said the country “continues to stand out as one of Asia’s strongest performers. Despite an uncertain external environment and weak regional growth, the economy expanded by 7.1% year-on-year in Q3 2016; the fastest pace in almost 3 years.”

According to a report from Rappler, Incalcaterra pointed to private consumption and investment as the main drivers for the country’s stellar growth rate. It’s also fairly insulated from any headwinds Asia might face in 2017 thanks to stable local demand.

Investments are also looking good for the Philippines. In a report from the Philippine Daily Inquirer, he said investments will remain robust thanks to the government’s increased spending on infrastructure, with 5% of the country’s GDP being put into projects. This will rise to 7% by the end of the Duterte administration.

The only pitfalls seen by HSBC were in the country’s manufacturing exports and agriculture. “On the other hand, the outlook for manufacturing exports does not look too bright outside electronics, which might lead to a continuation of trade deficits in the Philippines. Elsewhere, the Philippines remains highly vulnerable to weather trends. Fortunately, risks stemming from the onset of La Niña after El Niño are relatively contained, thanks to government efforts which are likely to ramp up rice imports in 2017,” Incalcaterra said.

Source: Philippine Daily Inquirer, Rappler