BSP exec eyes at least 7% growth for PHL in ’16 Q2

Bangko Sentral ng Pilipinas (BSP). (Wikipedia photo)

MANILA—A growth of at least seven percent is being considered by monetary officials on the Philippines’ second quarter 2016 economic expansion as manufacturing, vehicles and energy sales and business and consumer confidence continue to be strong.

”It looks like that it can be higher (than the first quarter’s 6.9 percent) on the basis of the indicators that we’re seeing,” Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo told reporters on Friday.

Results of the central bank’s Business Expectations Survey (BES) and the Consumer Expectation Survey (CES) for the second quarter of this year both showed that respondents were optimistic on the second quarter developments and expected better outcome for the next quarter.

Both the vehicles and energy sales during the quarter remained strong, with electricity prices down due to lower generation costs. Average generation charge was placed at PHP 0.13 per kilowatt hour (kWh) from the previous quarter’s PHP 4.03/kWh.

Purchasing Managers’ Index (PMI) remained above 50 point level, with the April figure rising to 55 from the previous month’s 53 and the May level at 59. A PMI level of 50 percent and up shows expansion while it is a contraction for 49 and down.

Add to these positive factors the impact of election spending for the May polls, Guinigundo said.

”All indications would point to a more robust economic growth in the second quarter of 2016,” he said.

Guinigundo declined to give specific figures but stressed that growth could be higher than the first quarter’s output, as measured by gross domestic product (GDP).

”That is because of the latest readings that we saw. Those are the usual indicators that you consult in trying to figure out the direction of the real GDP,” he added.

The government is scheduled to release the second quarter GDP report in end-August.

It targets a six to seven percent GDP this year.