THE PHILIPPINE ECONOMY is expected to fare better in the second half of the year, as easing interest rates could lift consumption and improving external climate may boost trade, according to Moody’s Analytics.
“The economy will fare better this year, especially in the second half. Fading inflation will give the Bangko Sentral ng Pilipinas (BSP) confidence to lower borrowing costs,” Moody’s Analytics said in its weekly report released on Monday.
Headline inflation is expected to cool down in the coming months due to favorable base effects. A BusinessWorld poll of 16 analysts last week yielded a median estimate of 3.1% for January inflation, which is within the 2.8-3.6% month-ahead forecast of the BSP.