Standard & Poor's says Philippines, Indonesia Continue to Lead ASEAN Economies
Standard & Poor’s on Tuesday raised its Philippine economic forecast for the year but cut its growth projection for Asia-Pacific as a whole and citing the impact of a slowing growth in China, the world's second largest economy.
In its report “Credit Conditions: Increased China Downside Risk Dampens Asia's Growth,” the debt-watcher revised its 2013 gross domestic product (GDP) growth outlook for the Philippines to 6.9 percent from 6.5 percent in May.
“The more domestically-led ASEAN economies, headed by the Philippines and Indonesia, continue to outperform the more trade-dependent newly industrialized economies,” the report read.
The revised projection now falls within the Philippine government’s 6 to 7 percent goal this year and is slightly higher than last year’s 6.8 percent.
The debt-watcher, however, trimmed its 2014 economic forecast for the Philippines to 6.1 percent from 6.3 percent.
S&P sees ASEAN economies growing 5.5 percent this year before accelerating to 5.6 percent next year.
“The ASEAN sub-region will continue to be the bright spot in Asia-Pacific, owing to the larger contribution of domestic demand to growth in these economies,” the report read.
The debt-watcher noted the downward revision for its Asia-Pacific forecast was largely prompted by cuts made in China’s economic forecast.
“We now see real GDP growth in Asia-Pacific at 5.3 percent this year, down slightly from our 5.5 percent forecast in May,” the report read.
S&P sees Asia-Pacific growth accelerating to 5.6 percent next year.
“Growth in Asia-Pacific came in weaker than expected in the first half of 2013 undercut by sluggish external demand and internal growth drivers,” the report read, adding that the “main risk factor for the region is a continued slowdown in China.”
China’s growth is forecast at 7.3 percent this year and the next, slower than the 7.5 percent target of the world’s second largest economy.
In an interview with reporters Monday, Socioeconomic Planning Secretary Arsenio Balisacan noted the economy will remain robust this year on domestic demand and a continued uptick in manufacturing and investments.
Philippine output expanded by 7.8 percent in the first quarter, the fastest in Asia, on the back of strong domestic demand and rising investments. (VS, GMA News – GMANetwork.com)
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The UK-ASEAN Business Council (UKABC) was created out of UKTI’s 2011 Strategy ‘Britain Open for Business’ and launched by Dr Vince Cable in November 2011. The underlying purpose of the UKABC is to facilitate a step change in the level of trade between the UK and Southeast Asia, and through this contributing towards UKTI’s ambition to support 50,000 SMEs and increase UK exports to £1trn by 2020.
With a particular focus on the SME community the UKABC runs a programme of awareness raising outreach activity aimed at improving understanding of the business opportunities in the ASEAN region, as well as giving practical advice and guidance on how to go about doing business there. The Business Council also provides roundtable and structured business-to-business networking opportunities with senior political and commercial decision makers who are visiting the UK from Southeast Asia.
You may visit the UK-ASEAN Business Council website here.
