Moody’s Analytics sees robust Q4 2014 pace sustained this year
MOODY’S Analytics said Philippine manufacturing likely sustained its robust expansion in December at 7.5 percent year-on-year and expects the sector to lead the pace of economic growth in the country this year.
The unit of Moody’s Investors Service based its latest estimate on strong demand seen from both the domestic and export markets.
“Industrial production in the Philippines grew strongly through the second half of 2014 and we expect this to continue in the December report,” it said.
The analytics firm stressed that brisk domestic and export demand is driving the solid performance of the manufacturing sector.
“Fourth-quarter GDP [gross domestic product]figures have already been released, showing a 7.3 percent year-on-year expansion in manufacturing. We expect a similar return in the final industrial production print for the year,” it added.
The growth outlook for the Philippines showed the manufacturing sector remaining as one of the major contributors to the anticipated achievement of the 7 percent to 8 percent target for GDP expansion in 2015.
The government has said manufacturing will be underpinned by a buoyant export sector, robust domestic demand for manufactured goods by improving household incomes, fueled partly by overseas Filipino workers’ remittances and increased election-related spending.
Last year, manufacturing was the top growth contributor, under the industry group, posting 22 percent.
The Philippine Statistics Authority (PSA) is expected to release the official December manufacturing output data next week, along with the exports figure for the same month.
The latest Moody’s Analytics forecast is part of its Asia Pacific Preview report, which provides a summary of major economic data on the region due out this week.
The firm provides expertise in economic and consumer credit analysis, credit research and risk measurement, enterprise risk management and structured analytics and valuation.