Philippines 3Q GDP grows an impressive 7.1%

Data shows strong growth momentum, says BBVA.

"Third quarter GDP for the Philippines came in well above expectations at 7.1% y/y (consensus: 5.4% y/y), up from 5.9% y/y in the second quarter, as government spending and investment boosted growth," BBVA added.

Citing official data, BBVA said that "sequentially, growth accelerated to 1.3% q/q sa from 0.2% q/q sa. Momentum is expected to remain strong in the Philippines after a total of 100bps in interest rate cuts since the start of 2012 (the most recent 25bps cut in October brought the policy rate down to its current 3.5%) and expectations for the continuation of proactive government spending in support of the economy."

"The outturn is yet another sign of the outperformance of ASEAN economies, on strong domestic demand and intra-regional trade," BBVA said further.