Stanchart forecasts 5.1% GDP growth

By Rommer Balaba

Reporter

STANDARD Chartered Bank upgraded its growth forecast for the Philippines this year to 5.1 percent from 4.7 percent on expectations of strong overseas remittances and a buoyant services sector. In its latest economic update, the Bank likewise indicated limited inflationary effects despite an expected temporary weakening of the peso because of the oncoming May elections. The government is targeting a GDP growth range of 6.1 percent to 6.7 percent this year after last year’s 5.4-percent expansion. “The domestic economy started the year on a firm note, with overseas workers remittances rising strongly . . .  the labor market is broadly supported by the buoyant services sector. These should cushion the impact of slowing exports and keep economic growth solid,” the update added. Bank economist Frances Cheung in a briefing Thursday night noted the Philippine economy remains resilient because of domestic strength, coupled with a sustainable Japanese economy and growing intra-Asian trade, which will offset the mitigation of a US slowdown.

 

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