Several international financial institutions have raised their growth forecasts for the Philippines in 2012, citing their expectation of a strong Philippine economy.
The local unit of Dutch financial giant ING Bank NV reported that the Philippine economy is expected to grow by 6.5% this year, accelerating from the 3.7% growth in 2011. They also pointed out that the Philippine economy has remained fundamentally strong due to the continuous pick-up of the export industry and increased government spending. ING also expects the peso to remain strong with a 41.60 to a dollar year-end forecast.
The World Bank has similar expectations, as it raised its growth forecast for the Philippine economy to 4.6% in 2012 given the strong performance of the economy in the first quarter of the year at 6.4%, as announced last May 31. The International Monetary Fund (IMF) has also lifted its growth outlook for the Philippines this year to 4.8%, and 4.9% in 2013.
The strong Philippine growth, together with the strong rebound in Thailand’s growth, has largely contributed to the improvement of the forecasting of economies of Southeast Asia. According to ADB’s Asian Economic Integration Monitor, Southeast Asia would grow by 5.2% on the back of the growth of the Philippines and Thailand.