Buoyant start to the year for the Philippines

The Philippines economy is powering ahead with growth likely to rise above 7% in the first quarter of 2018, driven by construction, manufacturing and positive consumer sentiment, according to capital markets research by First Metro Investment Corporation and the University of Asia and the Pacific.

Manufacturing surged to a seven-year high, reaching 24.8 % in February, while infrastructure spending increased by 25.2%, encouraged by elevated national government spending and strong overseas Filipino workers’ remittances.

According to the Market Call, Capital Markets Research, inflation exceeded the central bank’s target of 4% in March and is likely to continue in the short term. However, a rebound in monetary growth and a second US Fed rate hike in June, are likely to force the central bank to raise policy rates by 25 basis points to 3.25% in the second quarter of 2018.

To read the full report courtesy of First Metro Investment please click here.