By Joann Santiago
MANILA, Dec. 17 (PNA) — The Philippines is expected to be one of the world’s fastest economies in 2014.
In a report released Tuesday, Moody’s Analytics said the domestic economy “continues to outperform and will remain one of the world’s fastest-growing economies in 2014.”
”Confidence is high, and investment, both public and private, is driving the economy forward. Demand should rebound quickly after typhoon Haiyan (locally named “Yolanda’),” the report, produced by Moody’s economic research and analysis division and dubbed Asia-Pacific Outlook 2014, said. It was penned by Moody’s Analytics senior economist Glenn Levine.
In the first three quarters of 2013, the domestic economy churned in a 7.4 percent growth, higher than the government’s 6.0 to 7.0 percent growth target for the year and still the fastest in Southeast Asia.
This, despite a slower growth in the third quarter of 7.0 percent from the previous quarter’s 7.6 percent and year-ago’s 7.3 percent.
For the Asia-Pacific region, the report projects a better output than in 2013, given the improvements in the advance economies.
It projects the region to welcome 2014 with a solid growth but “with a mild tailwind from growing global demand.”
It cited that economies in the region and the rest of the world are slowly getting back to its feet and downside risks to growth are receding.
“Next year should be better than 2013, with most national economies growing near or at potential rates by year’s end,” it said.
The report pointed out that 2013 is generally marred by negative factors such as the lingering crisis in Europe, the political distraction in the United States that led to fiscal crisis, and the weaker-than-expected growth of China in the first half.
“Yet there are reasons to believe 2014 will be better,” the report said, noting that “OECD (Organization for Economic Cooperation and Development) leading indicator of economic activity is accelerating.”
Relatively, the looming cut in the Federal Reserve’s US$ 85 billion monthly bond purchases is expected to impact on Asia-Pacific economies but at a lesser extent compared to the volatility experienced in the first half of the year after Fed Chairman Ben Bernanke disclosed the possibility of the tapering.
“We expect less financial volatility in 2014, but this outlook is uncertain,” it said, noting that “financial shocks are by definition unforeseen, and even if the source is unknown, some volatility should be anticipated given the parlous state of the global recovery.” (PNA)