Emerging Asia Economics Update
The Philippines’ strong start to 2010 is likely to last
Today it was the turn of the Philippines to publish impressive Q1 GDP data. Base effects played a part but q/q growth was rapid too. The economic recovery is on solid foundations and will stay strong even as stimulatory policies are withdrawn. The first policy rate hike is close. We expect a first move in July and see rates climbing to 5.0% by year-end from 4.0% now.
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