The economy likely grew at a faster pace in the second quarter of the year, Moody’s Analytics said.

In its Economic Review for Asia Pacific, Moody’s Analytics projected the country’s gross domestic product (GDP) to have grown by 6.3 percent, higher than the 5.7 percent economic growth in the first quarter of the year.

In the second quarter of 2023, the gross domestic product (GDP) posted a 4.3 percent growth.

According to Moody’s, the higher GDP growth during the period was due to base effects, and the growth in exports, and government spending.

“In the Philippines, we expect economic growth to accelerate to 6.3 percent year on year from 5.7 percent in the March quarter. The result will be flattered by a low base effect,” Moody’s Analytics said.

Strong bounce

“A year earlier, growth slowed substantially to 4.3 percent, and in quarter-on-quarter terms, GDP went backwards. This time, robust goods exports and government spending should drive growth,” it said.

Moody’s said, however, private consumption and investment growth will stay muted as high borrowing costs weigh on budgets.

“A slower increase in tourist arrivals could see service exports lose some of their shine,” Moody’s said.

The Philippine Statistics Authority is scheduled to release the second quarter economic growth data on 8 August.