By Joann Santiago
MANILA, May 22 (PNA) — Expected improvement in government spending along with higher infrastructure investment made Moody’s Analytics project a 7.3 percent growth for the Philippine economy in the first quarter of 2015.
“Higher infrastructure investment and government spending, alongside robust domestic demand make the Philippines one of Asia’s strongest performing economies,” the economic research and analysis division of Moody’s Corporation said in a research note.
The government is scheduled to release the first quarter growth report on May 28, 2015.
Moody’s Analytics also expects a recovery in the country’s exports, bulk of which is accounted for by electronics.
It cited that electronic exports in the first three months of this year has improved after global demand regained its strength particularly that of the US.
The growth forecast of Moody’s Analytics for the first quarter of this year is higher than the 6.9 percent output in the last quarter of 2014.
Economic managers are confident of the sustained improvement of the domestic economy and the achievement of the government’s seven to eight percent growth target for this and next year on back of the increase in government’s expenditure program particularly on infrastructure.
In 2014, domestic output, as measured by gross domestic product (GDP) was below the government’s 6.5-7.5 target due to combination of the impact of calamities in the last quarter of 2013 and the congestion in Manila ports after the Manila City government implemented an expanded truck ban from February to September last year. (PNA)