First Metro forecasts 8.5% growth in Q2

MANILA, Philippines - The economy likely grew by eigth to 8.5 percent in the second quarter, First Metro Investment Corp. said yesterday.

In a statement, FMIC said this is the result of the growth momentum in the first quarter and election spending for the mid-term polls last May.

“We predict second quarter GDP growth to easily exceed eight percent as the economy benefited from strong consumption spending fueled by election expenditure and government infrastructure outlay,” FMIC President Roberto Juanchito Dispo said.

FMIC’s forecast is way above the six percent economic expansion recorded in the second quarter of last year. Moreover, this is even faster than the 7.8 economic growth in the first three months of the year.

FMIC Research head Cristina Ulang said “historically, the local economy has been off to a strong start in the first quarter of election years and has picked up momentum in the second quarter.”

“Our proprietary model shows that election and government infrastructure spending peaked in the second quarter as seen in the last three elections, firing up Philippine consumption, which is about three quarters of the domestic economy,” Ulang said.

Second-quarter economic growth is set to be announced by the government on Thursday.

“Growth may ease slightly in the second half, nevertheless full-year growth will surpass government’s full-year target of six to seven percent,” Dispo said