PH grew at a faster pace in Q1, says Moody’s

The Philippine economy likely grew at a faster pace in the first quarter, supported mainly by domestic demand, even as the country still reels from the effects of Supertyphoon “Yolanda” that hit the country late last year.

Moody’s Analytics, an affiliate of debt watcher Moody’s Investor Service, on Friday said the country’s growth likely accelerated in the January to March period of the year. In the fourth quarter of last year, growth was clocked at 6.5 percent.

For all of 2013, gross domestic product (GDP) grew by 7.2 percent, topping the state’s 6 to 7 percent target for the year.

This year, the government has set a more ambitious growth goal of 6.5 to 7.5 percent.

“The Philippine economy slowed in the fourth quarter as government spending and investment eased. Data from the opening quarter of 2014 have been quite robust, on average,” Moody’s said in a note to clients.

“Industrial production has slowed, but both exports and imports accelerated. It is not clear what impact, if any, the November typhoon had on the economy. Our model suggests a modest acceleration in GDP growth from the fourth quarter,” it said.

The government is scheduled to report the country’s first quarter GDP performance next week.