UK firm predicts 5.2% growth for Phl in 2013

MANILA, Philippines - UK-based accountancy and financial services firm  Institute of Chartered Accountants in England and Wales (ICAEW) expects the Philippine economy to  grow at a faster pace compared to most countries in Southeast Asia this year until 2015 due to strong consumption.

In a report titled: Economic Insight for South East Asia, quarterly briefing for the first quarter, the ICAEW said it expects the Philippine economy to expand 5.2 percent this year, driven by strong consumption.

“The Philippines (is) enjoying an unusual period of political stability that is helping consumer and business confidence and promoting a positive outlook for the private sector,” it said.

The economy expanded 6.6 percent last year.

ICAEW’s growth projection for the Philippines this year is higher than forecasts for other countries in the region such as Singapore (2.6 percent), Malaysia (4.3 percent) and Thailand (4.4 percent)

The forecast for the Philippines, however, is lower compared to the 5.9 percent projected growth for Indonesia.

For next year, the ICAEW expects the Philippine economy to expand at a faster pace.

“With food-price inflation likely to be moderate in the medium term barring major environmental upsets, low interest rates should bolster investment and allow for growth in the region of 5.5 percent in 2014,” it said.

The Philippines is likewise seen to outpace growth in other countries in the region next year with Singapore seen to grow  3.4 percent, Malaysia  to expand by 4.4 percent and Thailand to post 4.8 percent growth.

The country, however, is expected to grow at a slower pace compared to Indonesia which is projected to expand 6.2 percent this year.