Philippines to grow faster at 4.9% in 2012 – S&P

MANILA, Philippines – In a vote of confidence to the Philippines’ strong domestic economy, international credit rating firm Standard & Poor’s Ratings Services (S&P) raised its growth forecast for the country to 4.9%.

Previously, S&P said the Philippines’ gross domestic product (GDP) will only grow 4.3%.

This follows the strong economic performance of the Philippines in the 2nd quarter. The local economy grew 5.9% in the quarter, third fastest next to China and Indonesia.

On the other hand, S&P lowered its 2012 estimates for China to 7.5%; Japan to 2%; South Korea to 2.%% and Singapore to 2.1%.

“Naturally, any worsening of the economic conditions in the Eurozone will increase contagion risk for Asia Pacific, given the region’s – particularly the open economies’ – sensitivity to capital flows and trade,” said Andrew Palmer, S&P credit analyst.

The Philippine government is targeting a growth rate of 5% to 6% for 2012. Socioeconomic Secretary Arsenio Balisacan recently said the economy is likely to grow 6% this year. – Rappler.com