2013 manufacturing output seen up by 18%
MANILA, Philippines—Moody’s Analytics said the country’s manufacturing sector was seen to have grown at a faster pace in 2013 and that it was expected to continue fueling economic growth this year.
In its latest report on Asia-Pacific economies, the think tank said the manufacturing sector of the Philippines likely grew by 18 percent year on year in December. This would bring the average growth of the sector for 2013 to 13.5 percent, faster than the 7.5 percent posted in 2012.
“Manufacturers are enjoying solid growth as a result of better domestic sales and continued investment (flows) from both local and foreign firms,” Moody’s Analytics said in the report released on Monday.
The Philippine Statistics Authority is set to release Tuesday the official data on the 2013 manufacturing output.
As of November, subsectors that drove overall manufacturing production included non-electrical machinery, tobacco products, leather products, basic metals, rubber and plastic products, and beverages, the PSA said earlier.
Moody’s Analytics said Super Typhoon Yolanda, which devastated central Philippines in November, hardly dragged manufacturing output during the month and had no substantial spill-over effects in December.
This, it said, was because areas hit by the natural calamity had only few operating manufacturing companies.
In the meantime, Moody’s Analytics echoed the projection of the government that manufacturing would continue to serve as a key economic growth driver this year.
The Philippines grew by 7.2 percent last year, becoming one of the fastest-expanding economies in Asia.
The National Economic and Development Authority (Neda) earlier said that one of the favorable developments last year was the robust growth of the manufacturing sector, which in the past years had much smaller contribution to the economy.
Neda Director General Arsenio Balisacan earlier said an improved business sentiment helped drive growth of the manufacturing sector last year, when the country secured its first-ever investment grades from major international credit-rating agencies.
