PH to grow above 6% until 2015 –UN report

MANILA, Philippines – The Philippine economy will grow above 6% until 2015, supported by reconstruction activities in typhoon-stricken areas, the United Nations (UN) said.

According to the UN’s World Economic Situation and Prospects 2014 report released Tuesday, January 21, Philippine gross domestic product (GDP) growth is expected to hit 6.2% in 2014 and 6.3% in 2015. 2013 growth is forecast at 6.7%.

UN’s 2013 projection is within the Aquino government’s 6% to 7% target. The 2014 projection however is slightly below the goal of 6.5% to 7.5% for the year.

“The Philippines was hit by a severe typhoon in November 2013, which caused many deaths and widespread destruction,” the report said, referring to Super Typhoon Yolanda (Haiyan), which wrought massive destruction in Visayas provinces.

“The macroeconomic impact was, however, relatively limited, with only a mild reduction in the full-year growth rate for 2013 and reconstruction activities possibly adding to growth in 2014.”

(READ: Yolanda to cut PH growth –NEDA)

(READ: PH sees high growth despite typhoon)

The Philippines grew 7% in the third quarter of 2013, slower than the numbers recorded in the previous two quarters, as losses from a series of typhoons weighed.

Nevertheless, the country kept its status as one of the fastest-growing in the region, next only to China.

The government will release full-year 2013 GDP data on January 30.

East Asia growth

East Asia growth is seen to stay robust over the next two years as trading partners – the developed economies – gradually recover.

According to the UN report, average gross domestic product growth in the region is estimated at 6% in 2013.

“A further mild increase to 6.1% is projected for 2014 and 2015, mainly due to a recovery in exports amid improving conditions in developed countries,” noted the report.

The UN report said that private consumption and investment will continue to expand in most East Asian countries, supported by stable labor market conditions, low inflation, and fairly accommodative monetary policies.

But the report warned that expansion may be threatened by a sharp slowdown in the Chinese economy, as well as an abrupt tightening of external financing conditions triggered by the winding down of the US Federal Reserve’s stimulus program. – Rappler.com