Moody’s Analytics sees 6.3% GDP growth in 3rd quarter

MANILA, Philippines — The Philippine economic growth likely picked up pace in the third quarter from the second quarter despite the series of tightening moves by the Bangko Sentral ng Pilipinas (BSP), according to the economic research and analysis arm of Moody’s Corp.

In a report, Moody’s Analytics said the Philippine economy may grow by 6.3 percent in the third quarter from six percent in the second quarter.

“The Philippines’ GDP growth likely hit 6.3 percent year-on-year in September following the six percent expansion in the June quarter,” it said.

It added manufacturing slowed in the third quarter, but investment and broader domestic demand were relatively upbeat, providing some offset.

Despite softer GDP growth, Moody’s Analytics expects the BSP to deliver another 25-basis point rate hike to further curb rising inflationary pressure.

“We expect the BSP to deliver another 25-basis point interest rate hike by the end of the year to try to tame inflation, which is hovering near seven percent year-on-year due to a combination of the weak peso, high oil prices, and earlier adverse weather disrupting fresh produce supplies,” it said.

Inflation averaged five percent in the first nine months as the consumer price index leapt to a near-decade high of 6.7 percent in September from 6.4 percent in August.

The BSP sees inflation ranging between 6.2 and seven percent for the month of October.