MANILA – The Philippines is among the “more resilient” Asian nations amid the US-China trade war since its economy is “domestically” driven, an analyst said Friday.
Public spending and consumption in the country are among the top domestic drivers of the economy compared to Thailand, Malaysia or Singapore, said Moody’s Investor Service vice president and senior sovereign risk analyst Christian de Guzman.
“The Philippine economy is the most driven more domestically… We do see the Philippines as being more resilient to those trade headwinds, not immune but perhaps more resilient because the domestic drivers are much more important,” De Guzman told ANC.
The 2019 mid-term elections also does not pose risks for the economy since no “policy discontinuity” is foreseen compared to a potential change in leadership in the upcoming elections in India, he said.
Moody’s is also keeping its Baa2 with a “Stable Outlook” for the country as both the upside and downside risks remain stable. Its fiscal strength has also remained strong for the last 10 years, De Guzman said.
The country’s GDP grew 6.2 percent in 2018, data from the Philippine Statistics Authority showed. Bangko Sentral ng Pilipinas deputy governor Diwa Guinigundo earlier said a growth of 7 percent is “very doable” in 2019 as inflation has started to ease. (ABS-CBN News)
