AFP FILE PHOTO
Japanese financial giant Nomura has raised its 2018 growth forecast for the Philippines while projecting four interest rate hikes next year on expectations that the inflation rate could exceed the government’s target range.
In a Dec. 7 report titled “Asia in 2018: Stretching the sweet spot,” Nomura said that it was most upbeat on economic prospects for the Philippines, India and Indonesia next year.
In the case of the Philippines, Nomura said “we still view the growth outlook as solid, and raise our 2018 GDP [gross domestic product] growth forecast slightly to 6.9 percent from 6.8 percent earlier and from 6.7 percent in 2017.”
“We also expect growth to rise further to 7.1 percent in 2019. A pick-up in global growth and the tech cycle, which looks like it can remain on an upswing longer than we initially anticipated, should supplement already strong domestic demand conditions,” Nomura added.
BUSINESS
BUSINESS
BUSINESS
Nomura expects the Duterte administration’s ambitious “Build, Build, Build” infrastructure program as well as comprehensive tax reform to sustain robust economic growth.
“For next year, despite a likely increase in political noise, we expect the government’s focus on reforms to remain strong, alongside its drive to raise infrastructure spending further, which will be boosted by the reconstruction in Mindanao following the prolonged anti-terrorism military operations in Marawi,” according to Nomura.
