Moody’s says PH economy to outperform in 2014

The Philippine economy will be among the world’s fastest-growing in 2014 amid global headwinds that threaten to slow down the expansion of other emerging markets.

Moody’s Analytics, the research affiliate of Moody’s Investor Service, on Tuesday said that the effects of Supertyphoon “Yolanda” would likely be short-lived and that domestic demand would pick up in a few months.

“The Philippines continues to outperform and will remain one of the world’s fastest-growing economies in 2014,” the research group said in a report.

The government expects the economy to expand by 6 to 7 percent this year, although officials are confident that this target would be breached after three quarters of growth above 7 percent.

For its part, Moody’s sees the Philippines growing by 7 percent this year, matching the top end of the government target and the fastest among major Southeast Asian economies.

Next year, the government’s official growth target is 6.5 to 7.5 percent. The National Economic and Development Authority (Neda) expects growth in the fourth quarter to slow down due to the effects of Yolanda in several regions in Visayas.

But Moody’s noted that investor and consumer confidence remained high, which should allow the economy to keep growing at its current record rates.

“Investment, both public and private, is driving the economy forward. Demand should rebound quickly after Typhoon (Yolanda),” the report said.