The Philippines economy grew by over 7% in back to back quarters for the first time since 2004. Election expenditures, recovering exports, and a better global economy elevated the Philippines economy to 7.9 % growth in the second quarter.
Full year expansion ought to be in the direction of the high end of the 5 to 6% estimate, although it could exceed those levels.
Exports rocketed by 27.4%, the best results in nearly 25 years. Services, led by the business process outsourcing sector, jumped by 6.4% and added 3.2% to GDP growth.
As a result, the central bank of the Philippines (Bangko Sentral ng Pilipinas) stopped short of increasing interest rates. Officials continue to be concerned about the possibility of tepid global growth, despite the fantastic performance of the Pinoy economy.
Disappointing economic growth in the US, Japan, and China are hinting that the worldwide rebound is losing steam. Export growth in the Philippines decreased in Q2 following a boom of about 40% in the prior quarter.
Low inflation has enabled the Philippine central bank to maintain unchanged interest rates for over a year. The Philippine benchmark interest rate the lowest it has been since the central bank began recording data in 1990. The inflation rate stayed put at a 7 month low of 3.9%.
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