Solid domestic demand and recent tax cuts, are set to have driven faster growth in the second quarter of this year with the nation's gross domestic product (GDP) likely to expand beyond the 6.8% uptick of the previous three months, according to The Market Call, Capital Markets Research report.
The monthly report, published by First Metro Investment Corporation (First Metro) and the University of Asia and the Pacific, predicts that solid demand and production figures for Q1 will continue into the next quarter, in tandem with growing business confidence.
Annual jobs gains of around 1.5 million for the year ending in H1, together with improving consumer sentiment are among macroeconomic positives in the second quarter of the year. The Market Call analysts predict GDP growth will have risen above 7% in Q2, supported by government infrastructure spending. In April, the national government spend on roads, police stations and schools increased significantly from P33.5 billion ($627 million) to P65.6 billion.
Other positive second quarter news includes slowing inflation. May’s inflation figure rose marginally to 4.6%, up 0.1 percentage point from the previous month, while government tax revenues rose significantly, suggesting an upswing in economic activity.
To gain further insights from this report, courtesy of First Metro Investment Corporation please click here