BDO Money Talks: Philippine Markets Outlook

BDO Unibank, Inc. has released a Philippine Markets Outlook for the year 2017.

"We expect continued resilience for the Philippine real economy, changing global conditions not withstanding. But we also expect more external headwinds, many of which will pressure local financial and market conditions –interest rates, the peso, inflation, stock market gains –and create a bit of drag for the real economy, as reflected in our 6.3% GDP growth estimate for 2017, improving to 6.5% in 2018 as infra/ government spending pick up.

These headwinds include (1) further US Fed rate hikes and rising US long bond yields, (2) further US dollar strength and continued weakness for emerging market currencies including the peso, (3) rising oil and commodity prices, (4) increased protectionism on trade, jobs and borders in the US and some parts of Europe, (5) “known unknowns” with the Trump presidency, Brexit, and upcoming elections in France, Germany and elsewhere in Europe.

We highlight 3 upsides that could make Phil growth surprise: (1) faster and more effective roll-out of government infrastructure projects and PPPs, (2) faster/broader conversion of China-Philippine joint agreements into project undertakings, increased trade and tourism, (3) renewed surge in FDI/capital inflows, particularly from China and Japan."

To view the full report, kindly click here.

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