ADB raises 2013 growth forecast for PH

MANILA, Philippines – The Asian Development Bank (ADB) upgraded its growth forecast for the Philippines in 2013.

In its Asian Development Outlook report, ADB said the Philippines will grow 7% this year, higher than its forecast of 6% in April.

ADB projected the country will be the second-fastest growing economy in Asia, next to China, which the bank said will grow 7.6%.

While it was more optimistic about the Philippines’ prospects, ADB cut its projection for the region.

Southeast Asia’s growth this year will be 4.9%, said ADB, half a point lower than its April forecast, due to a slowdown in the growths of other countries.

“Lackluster export markets and moderated investment have weighed on growth in Indonesia, Thailand and Malaysia. By contrast, the Philippines is performing strongly, and its growth result will be higher than expected,” it said.

The Philippines grew 7.5% in the first half of 2013, higher than the government’s full-year target of 6% to 7%.

In 2014, ADB expects the Philippines to grow 6.1%, higher than its previous estimate of 5.9%.

Growth in Southeast Asia is expected to pick up to 5.3% by 2014, the multilateral agency said.

“In 2014, growth will quicken to 5.3% as investment recovers and exports benefit from improved global trade and recent currency depreciation in several economies.”

Slowdown in Asia

ADB said that a slowdown in the Asian region is expected because of the slow growth of Asia’s two largest economies, China and India.

The bank downgraded its 2013 growth forecast for India to 4.7% from 6%.

The lender also trimmed down its forecast for China to 7.6% from 8.2%.

READ: China lowers 2012 GDP growth to 7.7% from 7.8%

“In the People’s Republic of China, growth is expected to moderate to 7.6% in 2013 from 7.7% last year. The authorities there are engineering a medium-term transition to a more sustainable growth path than one led by exports and investment,” ADB said. – Rappler.com