Investment in Philippines

Philippines - Investment
GDP growth improves in Q1, yet again surprising to the upside
According to a preliminary estimate, GDP growth improved to 8.3% year-on-year in the first quarter, from 7.8% in the fourth quarter of last year. Q1's reading marked the best reading since Q2 2021 and brought the economy above its pre-pandemic level. The reading beat market expectations.
A surge of Omicron cases early in the quarter wasn’t enough to dampen spending, with private consumption increasing 10.1% in the first quarter, which was above the fourth quarter's 7.5% expansion. The relaxation of Covid-19 restrictions after the initial Covid-19 wave supported consumer demand. In addition, fixed investment growth edged up to 11.0% in Q1, compared to the 10.8% expansion logged in the prior quarter. Public consumption growth, meanwhile, grew at the slowest pace since Q4 2021, expanding 3.6% (Q4 2021: +7.8% yoy).
On the external front, exports of goods and services growth accelerated to 10.3% year-on-year in the first quarter, which marked the best reading since Q2 2021 (Q4 2021: +7.7% yoy). In addition, imports of goods and services growth sped up to 15.6% in Q1 (Q4 2021: +14.3% yoy), marking the highest reading since Q2 2021.
On a seasonally-adjusted quarter-on-quarter basis, economic growth slowed notably to 1.9% in Q1, following the previous quarter's 3.5% growth. Q1's reading marked the worst reading since Q2 2021.
Looking ahead, our panelists expect growth to maintain momentum in Q2. The reopening of the economy following the easing of Covid-19 cases will boost private consumption. That said, high inflation and the pre-election spending ban pose negative risks to the outlook.
FocusEconomics Consensus Forecast panelists project GDP to increase 6.5% in 2022, which is down 0.2 percentage points from last month’s estimate. For 2023, they forecast economic growth of 6.2%.
Philippines - Investment Data
2015 | 2016 | 2017 | 2018 | 2019 | |
---|---|---|---|---|---|
Investment (annual variation in %) | 13.8 | 20.9 | 10.6 | 12.9 | 3.9 |
Philippines Facts
Value | Change | Date | |
---|---|---|---|
Bond Yield | 4.44 | -4.11 % | Dec 27 |
Exchange Rate | 50.66 | 0.02 % | Jan 01 |
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Economic News
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Philippines: Remittances rise in April at fastest rate since November 2021
June 15, 2022
Remittances came in at USD 2.4 billion in April, reflecting a 3.9% year-on-year rise, following March's 3.2% year-on-year increase.
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Philippines: Merchandise exports rise at a quicker pace in April
June 9, 2022
Merchandise exports climbed 6.0% in annual terms in April (March: +5.9% year-on-year).
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Philippines: Inflation rises in May to highest level since November 2018
June 7, 2022
Consumer prices recorded 0.53% growth over the previous month in May, which was lower than April's 0.98% increase. Inflation rose to 5.4% in May from April’s 4.9%.
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Philippines: Manufacturing PMI deteriorates, but remains in expansionary territory, in May
June 1, 2022
The S&P Global Manufacturing Purchasing Managers' Index (PMI) came in at 54.1 in May, down from April's 54.3.
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Philippines: Central Bank starts hiking cycle in May with 25 basis points increase
May 18, 2022
At its monetary policy meeting on 18 May, the Central Bank of the Philippines (BSP) raised the overnight reverse repurchase facility rate by 25 basis points to 2.25% from its record low of 2.00%, matching market analysts’ expectations.