Economy shows ‘signs of overheating’ - DBS

Singapore-based DBS Bank said it is seeing early signs of an overheating Philippine economy – making a case for a monetary policy tightening in the coming months.

“The Philippine economy is displaying early signs of overheating,” DBS said in a report, citing the factors that prompted its assessment: nearly 7 percent growth in gross domestic product (GDP) in 2016; above 3 percent headline inflation rate since February 2017; very strong investment growth; more than 20 percent expansion in gross fixed capital formation in 2016.