Free Submission Public Relations &
Deutsch English

Philippines Business Forecast Report Q4 2012

Philippines Business Forecast Report Q4 2012 - new country guide report published

Print article Print article
2013-01-01 01:57:53 - Philippines Business Forecast Report Q4 2012 - a new country guide report on

Following 2011´s disappointing GDP growth of 3.7%, we estimate that the Philippine economy will bounce back with slightly stronger growth of 4.2% in 2012. Weak external demand as a result of a developing hard landing in China and the continued malaise in the eurozone and Japan will continue to weigh on exports, which we estimate will grow only 2.2% in 2012. Following Bangko Sentral ng Pilipinas´ two rate cuts totalling 50 basis points in Q112 (matching our target), we continue to expect the central bank to keep rates on hold through the rest of 2012, as inflation, which remained modest at 2.8% in June, will rise only incrementally to 3.4% by the end of the year.

The Philippines´ fiscal position continues



to improve. We expect the budget deficit to widen to just 2.2% of GDP in 2012, compared with the government´s projection of 2.6%, as spending continues to be limited by administrative difficulties. While its improving fiscal dynamics led to a credit rating upgrade from Standard & Poor´s in July, we note that the Philippines´ low GDP per capita and relatively high debt-to-GDP ratio will most likely prevent it from acceding to investment grade until at least late 2013.

Major Forecast Changes

Following stronger-than-expected Q112 growth of 6.4% year-on-year (y-o-y), we have upgraded the Philippines´ full-year GDP growth forecast from 3.9% to 4.2%. That said, we still expect the economy to slow in the second half of the year as poor external conditions clash with a relatively health domestic economy.

Key Risks To Outlook

A third round of quantitative easing from the US Federal Reserve remains a possibility. This, or a material improvement in the global economy, could see the Philippine peso outperform our bearish end-of-2012 forecast of PHP46.00/US$.

Click for report details: ..

Browse all All Sectors Country Guide Reports ..

Browse all All Sectors Company Profile Reports ..

Browse all Latest Country Guide Reports ..

About Us is a leading online business information aggregator with over 300,000 market reports and company profiles available to our clients. Our extensive range of reports are sourced from the leading publishers of business information and provide clients with the widest range of information available. In terms of company profiles,’s online database allows clients access to market and corporate information to over 100,000 different companies. We provide clients with a fully indexed database of information where clients can find specific market reports on their niche industry sectors of interest.

Mike King
Phone: London: +44 (0) 203 086 8600

Disclaimer: If you have any questions regarding information in these press releases please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims contents contained in this release.
Latest News
Read the Latest News


Terms & Conditions | Privacy | About us | Contact