Philippines Becomes Fastest Growing Economy in Developing Asia

The Philippine Statistics Authority reported on Thursday that the economy grew at a rate of 7.1 percent in the third quarter, compared to the same period last year, making it the fastest growing economy in developing Asia. This was its fastest growth rate recorded in the past three years, and a 1.2 percent improvement on the previous quarter. Bloomberg’s survey of 15 economists showed they expected a growth rate of 6.7 percent. Despite a strained relationship with the U.S., following President Rodrigo Duterte’s inflammatory remarks against the American president, investments were up, as was consumer spending. The Philippine economy is expected to grow at more than 6 percent all the way through to 2018, which will make it one of the fastest growing economies in the world. The Philippines exceeded the growth rate of China for the quarter, which reported a 6.7 percent increase, and the 6.4 percent reported by Vietnam. India led the region in the second quarter with a 7.1 percent increase, but is yet to release results for the last quarter.

Household spending was up by 7.3 percent, further adding to the sector’s 70 percent contribution to GDP. Government spending was up by 3.1 percent and investment increased by a stellar 20 percent. These were no doubt helped by President Duterte’s $160 billion infrastructure plan. “Putting money on infrastructure-related stocks is the smart bet and it’s exactly what I am doing,” said John Padilla, a money manager at Metropolitan Bank & Trust Co, the Philippines third-largest fund manager. “This growth poses now more challenge for President Duterte to keep the pace. It supports the view that Philippines needs infrastructure to sustain this growth.”