Moody’s forecasts Q3 slowdown

MANILA, Philippines - Philippine economic growth likely slowed in the third quarter from an uptick in the previous three months, research firm Moody’s Analytics said.

“The flow of new government infrastructure projects slowed, which may weigh on GDP (gross domestic product) growth,” Moody’s Analytics said in a research note.

At the same time, the firm said “Industrial production, the best monthly gauge of overall growth, slowed in the three months to September.”

Moody’s Analytics said economic output is seen at 5.9 percent for the third quarter, slower than the 6.4 percent growth in the second quarter.

Official third quarter GDP figures will be released by the government on Thursday next week.

But the domestic economy remained strong in the third quarter despite growth expected to have slipped from the second quarter.

 “Production has fully recovered from last year’s typhoon and business sentiment remains upbeat…. [E]xport growth has accelerated and imports have improved, reflecting a stronger domestic economy,” Moody’s Analytics said.

The Philippine economy grew by six percent in the first half of the year, below the government’s full-year target of 6.5 percent to 7.5 percent. However, government officials earlier this month said the low-end of the target is still very attainable.

The International Monetary Fund (IMF) has forecast Philippine economic growth at 6.2 percent this year, while the World Bank sees the economy expanding by 6.4 percent in 2014.

The Asian Development Bank, for its part, projected a 6.2-percent growth for the Philippine economy this year.