The Philippines economy continued to perform well, outperforms other Asian peers in Q1. Philippines clocked an impressive 6.9% growth in Q1 2016 compared to 6.5% in Q4 2015. It was the highest quarterly growth in almost three years, officials said Thursday, as the government prepares to hand over leadership to the incoming administration.
The economy grew an average of 6.2 percent over the last six years. The main drivers were services sector, which grew 7.9 percent and industry, which recorded its highest growth in five consecutive quarters at 8.7 percent, officials said. Investments also surged, with fixed capital posting 25.5 percent growth. Agriculture contracted 4.4 percent, the fourth consecutive quarter of decline.
"For the year, we see GDP holding up at 6% vs 5.9% in 2015. This would make it the fourth fastest growing Asian economy after India, Vietnam and China." said Commerzbank in a report.
President-elect Rodrigo Duterte won the May 9 presidential race and will start his single six-year term on 30-June. For investors, policy continuity under the new administration will be of upmost important.
Finance Secretary Cesar Purisima said it is important not to miss the current wave of foreign investments in the region, where the Philippines is now a destination of choice. Demonstrating the maturity of its democratic institutions, policy consistency and agreement on a long-term vision are important for sustained business confidence, he added.
