Skip to main content

Philippine economy bucks global headwinds

By Kevin Voigt, CNN
November 29, 2012 -- Updated 0806 GMT (1606 HKT)
Workers clean windows of a building in Manila on November 28, 2012.
Workers clean windows of a building in Manila on November 28, 2012.
STORY HIGHLIGHTS
  • The Philippine economy grew 7.1% last quarter -- the fastest growth in two years
  • Economy growing at the fastest rate in Asia next to China's 7.4% growth
  • Manila is bucking the global pressures of EU debt crisis and China slowdown
  • IMF chief: Philippines economic forecast only nation revised up in 2012

(CNN) -- The Philippine economy grew 7.1% last quarter -- the fastest growth in two years and the fastest pace in Asia next to China -- a strong sign that the Southeast Asian economy is building domestic-growth rather than relying on exports.

Manila is bucking the global pressures of the eurozone debt crisis and the slowdown in China. The Philippines is the only nation whose expected growth has been raised by the International Monetary Fund, rather than revised down, IMF Chief Christine Lagarde noted while visiting Manila earlier this month.

"There is no denying it, the Philippines is having a fantastic year despite strong global headwinds," HSBC said in a research note Wednesday. "This is largely due to the fact that policy makers took timely measures to counterbalance an anticipated slowdown of demand from China and the eurozone as well as the resilient nature of the services-oriented economy."

The stronger-than-expected growth brings more good news for the administration of President Benigno Aquino III, who last month signed a landmark peace deal with Muslim rebel leaders that moves to end the long-running insurgency in the nation's troubled south.

A strong service sector, accelerated growth of the industry sector and better than expected agricultural output led grow, Socio-Economic Planning Secretary Arsenio Balisacan told reporters Wednesday. Household spending contributed more than half of the growth on the demand side, he added.

The 7.1% year-on-year growth in the third quarter was up from 6% growth in the second quarter. "Overall, we now expect the economy to expand by 6.3% this year, up from our previous forecast of 5.0%,"wrote Gareth Leather of Capital Economics in a research note. "Reflecting the economy's resilience, we are also raising our growth forecast for 2013 to 4.5%, up from 4.0% previously."

What is driving the Philippines' surprisingly strong growth?

ADVERTISEMENT
Part of complete coverage on
June 17, 2014 -- Updated 1206 GMT (2006 HKT)
London is promoting its tech stars to shows it can compete with Silicon Valley. Here are five companies to watch.
June 18, 2014 -- Updated 1222 GMT (2022 HKT)
It's not easy being Jordan and it is about to become even more difficult, again.
June 18, 2014 -- Updated 1502 GMT (2302 HKT)
At the last football World Cup, it was all about 3D. This time around, it's nothing less than 4K.
June 5, 2014 -- Updated 1416 GMT (2216 HKT)
Bob Mazzer has photographed inside London's Tube network for 40 years. He's captured history.
June 13, 2014 -- Updated 1529 GMT (2329 HKT)
Iraq produces 3.3 million barrels per day and has the world's fourth-largest oil reserves. But the current crisis is putting all this in danger.
June 18, 2014 -- Updated 1222 GMT (2022 HKT)
Sandwiched in between Iraq and Syria, Jordan's destiny seems to be one of a constant struggle for survival. John Defterios explains.
June 16, 2014 -- Updated 1314 GMT (2114 HKT)
The gas standoff between Russia and Ukraine could have a knock-on effect on Europe. Explore this map to find out why is the EU nervous.
June 5, 2014 -- Updated 1416 GMT (2216 HKT)
Bob Mazzer has photographed inside London's Tube network for 40 years. He's captured history.
June 17, 2014 -- Updated 1206 GMT (2006 HKT)
The UK capital promotes its tech stars and shows it can compete with Silicon Valley. Here are five companies that pitch to make it big.
June 3, 2014 -- Updated 0956 GMT (1756 HKT)
Banksy has condemned an exhibition of his work after organizers defended their decision to remove his art from public spaces.
June 3, 2014 -- Updated 1029 GMT (1829 HKT)
As debate rages over whether Banksys should be for sale, we direct you to the ones you can still see on the streets.
June 2, 2014 -- Updated 1338 GMT (2138 HKT)
While Ukraine's fight for freedom gets bloodier by the day and Russia faces the West's cold shoulder, one oligarch is using art to get his message across.
May 30, 2014 -- Updated 2114 GMT (0514 HKT)
Index on Censorship's Jodie Ginsberg argues the "right to be forgotten" decision is too woolly.
May 29, 2014 -- Updated 1613 GMT (0013 HKT)
Andy McNab says being a psychopath makes us better at business, life and love. Could he be right?
May 28, 2014 -- Updated 1720 GMT (0120 HKT)
Google has revealed a prototype of its latest driverless car -- and this one doesn't even have a steering wheel.
May 30, 2014 -- Updated 1024 GMT (1824 HKT)
CNN's Nina dos Santos speaks to the mothers of successful children and asks them: What's the secret of bringing up a winner?
May 26, 2014 -- Updated 1613 GMT (0013 HKT)
Far-right and far-left parties across Europe caused a political "earthquake," with a string of victories in voting for the European Parliament.
May 26, 2014 -- Updated 1623 GMT (0023 HKT)
CNN's Fionnuala Sweeney speaks to Mihaela Carstei about the $400B gas deal recently struck between Russia and China.
May 21, 2014 -- Updated 0818 GMT (1618 HKT)
The EU is struggling to identify its vision after financial crisis. The European elections are key, and Nina dos Santos says the union needs a new vision.
May 26, 2014 -- Updated 1135 GMT (1935 HKT)
CNN's Nina Dos Santos sits down with Elon Musk's mother Maye, who tells her the story of her family and their success.
May 7, 2014 -- Updated 1410 GMT (2210 HKT)
Boko Haram attacks have shifted the focus at the World Economic Forum hosted by Nigeria, CNN's John Defterios explains.
May 20, 2014 -- Updated 2219 GMT (0619 HKT)
Russian oligarch is set to lose half his wealth after being ordered to pay his former wife $4.5 billion in a divorce settlement.
April 2, 2014 -- Updated 1324 GMT (2124 HKT)
China's ultimate goal is to reach a wide-ranging trade agreement with the EU. The EU hopes to persuade China to open its markets.
ADVERTISEMENT