The Philippine economy managed to beat most expectations by growing at an exceptional rate last year, but it is now poised to expand by an even faster pace in 2013, the Bangko Sentral ng Pilipinas said.
The BSP’s forecast is anchored on assumptions that the increase in private sector investments will be sustained and that export earnings will improve further.
In a speech before Chinese-Filipino businessmen, BSP Governor Amando Tetangco Jr. said the unfavorable conditions abroad could dampen the performance of the Philippine economy. But he noted the emergence of encouraging indicators that showed another robust economic growth rate could be possible this year.
Last year, the Philippine economy grew by 6.6 percent, beating the official target of 5 to 6 percent, to become one of the fastest growing markets in the region.
“While challenges … continue to pose risks to the economy, the BSP is optimistic that with an even stronger partnership between the private sector represented by business organizations like the FFCCCII (Federation of Filipino Chinese Chamber of Commerce and Industry Inc.), the Philippines could do a repeat, if not better, performance this year,” Tetangco said in the speech during the group’s convention last week.
The rise in private-sector investments was credited as one of the key factor that fueled growth last year.