Philippine economy bucks global headwinds
updated 3:06 AM EST, Thu November 29, 2012
Workers clean windows of a building in Manila on November 28, 2012.
- The Philippine economy grew 7.1% last quarter -- the fastest growth in two years
- Economy growing at the fastest rate in Asia next to China's 7.4% growth
- Manila is bucking the global pressures of EU debt crisis and China slowdown
- IMF chief: Philippines economic forecast only nation revised up in 2012
(CNN) -- The Philippine economy grew 7.1% last quarter -- the fastest growth in two years and the fastest pace in Asia next to China -- a strong sign that the Southeast Asian economy is building domestic-growth rather than relying on exports.
Manila is bucking the global pressures of the eurozone debt crisis and the slowdown in China. The Philippines is the only nation whose expected growth has been raised by the International Monetary Fund, rather than revised down, IMF Chief Christine Lagarde noted while visiting Manila earlier this month.
"There is no denying it, the Philippines is having a fantastic year despite strong global headwinds," HSBC said in a research note Wednesday. "This is largely due to the fact that policy makers took timely measures to counterbalance an anticipated slowdown of demand from China and the eurozone as well as the resilient nature of the services-oriented economy."
The stronger-than-expected growth brings more good news for the administration of President Benigno Aquino III, who last month signed a landmark peace deal with Muslim rebel leaders that moves to end the long-running insurgency in the nation's troubled south.
A strong service sector, accelerated growth of the industry sector and better than expected agricultural output led grow, Socio-Economic Planning Secretary Arsenio Balisacan told reporters Wednesday. Household spending contributed more than half of the growth on the demand side, he added.
The 7.1% year-on-year growth in the third quarter was up from 6% growth in the second quarter. "Overall, we now expect the economy to expand by 6.3% this year, up from our previous forecast of 5.0%,"wrote Gareth Leather of Capital Economics in a research note. "Reflecting the economy's resilience, we are also raising our growth forecast for 2013 to 4.5%, up from 4.0% previously."
What is driving the Philippines' surprisingly strong growth?
Part of complete coverage on
updated 2:47 AM EDT, Mon April 22, 2013
Twitter resumes -- or "twesumes" -- have been touted as the best way for social media-savvy types to snag a dream job.
updated 4:00 AM EDT, Wed April 17, 2013
We live in a three-speed economic world, according to the International Monetary Fund.
updated 12:27 PM EDT, Wed April 17, 2013
Women have long dominated the heated discussion around gender equality. But men need to too, says Facebook's Sheryl Sandberg.
updated 6:53 AM EDT, Fri April 19, 2013
Security threats from mobile malware are on the rise and nearly 95% of targets operate on the Android operating system, according to a new report from NQ Mobile.
updated 4:06 PM EDT, Mon April 15, 2013
Microsoft is working on a touch-enabled smartwatch, The Wall Street Journal says, reporting that the company asked Asian suppliers to ship components for the device.
updated 2:47 AM EDT, Fri April 19, 2013
Give your anxious, negative colleagues a chance, and they just might surprise you.
updated 6:46 AM EDT, Wed April 17, 2013
In Europe, high-speed rail has come to stand for ease and efficiency where journeys of four hours or less trump airplanes and the hassle of airport security.
updated 2:12 PM EDT, Fri April 19, 2013
Infographic: Singapore may be tiny but it is also one of East Asia's most powerful trading hubs.
updated 8:27 PM EDT, Sun April 21, 2013
In Hong Kong urban lore, an apartment where a violent death took place can often be bought for as much as 10-30 per cent off the market price.
updated 12:05 PM EDT, Tue April 16, 2013
With gold prices officially in a bear market, investors must ask themselves if this is the time to buy?