Moody's Analytics Inc. said Monday that Philippine output as measured by the gross domestics product likely accelerate by 4.8 percent in first quarter of 2012.
The unit of New York-based Moody’s Investors Service said in its latest “Asia Pacific Review” that higher government spending gave the Philippine economy a much-needed boost in the face of weak global demand during the first three months of the year.
“GDP in the Philippines likely grew 4.8 percent in the first quarter, after 3.7 percent in the fourth… increased government spending drove the acceleration, boosting domestic demand amid still-weak exports,” Moody's Analytics emphasized in its review.
It noted government stepped up infrastructure spending to encourage foreign investment and beef up the business process outsourcing industry.
Higher government spending would help offset the slowdown in private consumption as growth remittances by overseas Filipino workers (OFWs) continued to ease this year, according to the Moody’s Analytics.
“Private consumption lost some steam as remittances from Filipinos working abroad eased. Remittances, a key driver of private consumption, account for 10 percent of GDP,” it added.-GMA News (May 28, 2012)
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