Philippines growth edges up to 6.9% in Q3
MANILA - GDP growth in the Philippines rose to 6.9% y/y in Q3 following an upward revision in Q2. Net exports provided an offset to moderation in domestic demand. But ANZ Bank warns that expansion in the real estate sector was undeterred, “making us increasingly cautious about the quality of overall growth".
ANZ says high frequency indicators suggest that growth momentum could continue to pick up in Q4, “which means our current 2017 growth forecast of 6.5% is looking a bit light”.
“The upside risks to inflation, coupled with deepening imbalances in fundamentals, strengthen our view that monetary policy tightening is necessary, and we expect policy hikes of 50bps (cumulative) in Q1 2018,” ANZ says. www.live.anz.com (ATI).