HSBC Raises Philippines Forecasts 3x from 6.3% → 6.5% → to 6.8% in Q3 as GDP Swells

Null

HSBC Bank plc  one of the largest banking and financial services organizations in the world. Photo: eia-international.org

HSBC raises 2016 PHL growth forecast to 6.8% as GDP swells

Read: HSBC Upgraded Philippine Economic Growth Forecast 6.3 - 6.5 Percent in October last Month

The Hongkong and Shanghai Banking Corp. (HSBC) has raised its Philippine growth forecast for the full year 2016 as the country exceeded expectations about the third quarter gross domestic product (GDP) results.

The global banking giant revised its growth forecast for the year to 6.8 percent from 6.5 percent this year, according to a report penned by HSBC economist Joseph Incalcatera.

As measured by the GDP, the economy grew by 7.1 percent in the third quarter of the year, the fastest among major Asian emerging markets, and beating median expectation at 6.8 percent.

Growth story intact

In the next two years, HSBC placed the GDP to grow by 6.5 percent citing the high base of 2016.

"The growth data show that the Philippine growth story remained intact in the third quarter," Incalcatera said.

"The 7.1 percent year-on-year expansion in the third quarter is Asia's strongest Q3 print to-date, and points to the resilience of the Philippine economy in a soft global growth environment," he added.

The HSBC economist noted the government is tracking well within its 6 to 7 percent full-year target as the economy expanded by 7 percent during the first nine months.

Asian Institute of Management economist Emmanuel Leyco is forecasting a higher trajectory for the whole of 2016.

"I think it would be more like 6.9 percent assuming that the last quarter would remain on the high spectrum," Leyco said on Friday.

In the HSBC report, Incalcatera took note the election of Donald Trump as President of the United States introduces some risks to growth due to the likelihood of protectionist policies.

"But we believe risks to the Philippines are manageable and more limited than elsewhere. The biggest risk comes from the BPO (business process outsourcing) sector, which employs approximately 1.2 million Filipinos and earns roughly 70 percent of revenues from the US," he said.

Leyco earlier noted the BPO industry might suffer economic headwinds from a Trump presidency if he starts taking steps to fulfill his campaign pronouncement of imposing taxes on US companies that outsource jobs abroad.

Incalcatera, however, said the risks may be mitigated because there is little direct competition with American workers and President Rodrigo Duterte appears to have struck a more conciliatory tone concerning future cooperation with the US. — VDS, GMA News

Share on Google Plus

About Webber

I am among of the writers and administrators of this web site. I always on the heads up when it comes to Sports, Politics, Economy, Business, Physics, Mathematics, Technology, computers and NEWS all over the world that triggers ny eyes and interests. I am working as a volunteer with other 14 administrators, researchers, writers and contributors. We are a strong solid team. Join us and be among of the contributor with your name on each posted article.

    Anonymous or Google Comment
    Facebook Comment

YOU MAY LIKE TO READ

LEARN FOREX TRADING AND GET RICH

Investment Recommendation: Bitcoin Investments

Live trading with Bitcoin through ETORO Trading platform would allow you to grow your $100 to $1,000 Dollars or more in just a day. Just learn how to trade and enjoy the windfall of profits. Take note, Bitcoin is more expensive than Gold now.


Where to buy Bitcoins?

For Philippine customers: You could buy Bitcoin Online at Coins.ph
For outside the Philippines customers  may buy Bitcoins online at Coinbase.com