Philippine economy to grow better in 2nd quarter

The Philippine economy as measured gross domestic product (GDP) is likely to grow better in the second quarter of the year compared to the first quarter as exports growth would recover, according to the FMIC and UA&P market research.

The report expects investments to continue rise, and the government would spend more in the second quarter than it did in the first quarter.

Inflation is likely to remain within the 4.5-4.7% range for the second quarter due to stable rice and other food prices and the more than 10% fall in crude oil prices on May 5.

The report also expects tax revenues to slow down in the second quarter particularly for the Bureau of Customs on account of lower oil prices and peso appreciation vis-à-vis year ago levels.

Monetary policy is unlikely to change given our view that the headline inflation rate will not accelerate sub­stantially in the second quarter.

The peso will be volatile with a slight positive bias but will be subject to the changing and complex external en­vironment, the report added.