Philippine Q2 GDP growth fastest in five quarters

The Philippine economy grew at its fastest pace in more than a year in the second quarter even as government spending slowed, strengthening views the central bank will raise interest rates again to curb inflation. The Southeast Asian economy remains a popular investment destination due to relatively strong economic fundamentals, a stable political environment and improved credit ratings. Standard & Poor's raised the country's long-term credit ratings in May to two notches above investment grade. After a slow start to the year, the economy grew a seasonally adjusted 1.9 per cent against the upwardly revised 1.4 per cent in the March quarter, the fastest pace in five quarters. ‘The rebound in net exports offset the slowdown in public spending,’ ANZ said in a research report, adding that it was reiterating its 2014 growth forecast of 6.9 per cent on the back of the recovery in manufacturing. On a year-on-year basis, growth accelerated to 6.4 per cent in the second quarter on strong manufacturing and exports. The outcome beat market forecast of 6.2 per cent, putting the country on track to meet its full-year GDP target of 6.5-7.5 per cent, according to abs-cbnnews.com