Philippine economy grows 7.1% in third quarter, surpasses Indonesia

Featured South East Asia - November 30th, 2012
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The Philippines’ economy grew 7.1% year on year in the three months to September on the back of reforms initiated by President Benigno Aquino, officials said Wednesday.

The Southeast Asian nation posted higher growth in the third quarter than Indonesia, the region’s biggest economy which grew 6.2%, putting it on track to surpass its annual forecast of 5.0-6.0%, President Benigno Aquino’s spokesman Edwin Lacierda said.

“This was made possible due to sustained confidence in the leadership of President Aquino and his administration, which has consistently equated good governance with good economics,” Lacierda told AFP.

Mr. Aquino’s anti-corruption campaign has led to improved fiscal management, transparent public spending and a better overall business environment that helped the economy gain momentum.

The country faces “very fruitful times ahead,” says Budget Secretary Florencio Abad, with low inflation and interest rates and increased confidence in government reforms. Moody and Standard & Poor have both raised the Philippines’ credit ratings in recent months.

HSBC Bank economist Trinh Nguyen cited the “resilient” nature of the Philippine economy. “There is no denying it, the Philippines is having a fantastic year despite strong global headwinds,” she said in a report.