Economy seen growing by 4% in 2012

Moody’s Analytics expects Philippine economic growth to accelerate this year, but at a pace slower than targeted, citing the dampening effects of a still weak global economy on Southeast Asian countries.

In a report, Moody’s Analytics said the Philippines would likely grow by 4 percent this year and 4.8 percent next year.

The projections are faster than the 3.7 percent posted last year, but are below the government’s growth targets, 5 to 6 percent this year and even faster next year.

Moody’s Analytics said the likely acceleration of the country’s growth this year was anchored on expectation that domestic demand would remain robust, tempering the ill-effects of a still weak demand for exports.

However, it said the economy might not grow as fast as desired given the impact of global economic problems, led by a possible mild recession in the Euro zone.

Moody’s Analytics said neighboring countries like Indonesia, Malaysia, Thailand, and Singapore were likewise seen to post growth rates slower than what their governments desired.

The Euro zone is one of the main export markets for Asian goods.