MANILA – Moody's Analytics sees a weaker growth of 4.2 percent for the Philippine economy in the second quarter this year from the higher-than-expected 6.4 percent expansion in the first quarter but it forecast a 4.7 percent full-year growth for the country.

In its Asia Pacific Preview for Aug. 27-31, 2012, the Moody's subsidiary which provides economic research and analysis, said imports had “strengthened, reflecting resilience in domestic demand despite global headwinds.”

“The services sector continued its steady and resilient expansion, and government spending remained strong,” it said.

However, the report cited some weak points.

“Manufacturing was volatile, and private consumption likely softened as remittances from Filipinos working abroad have lost some steam,” he said.

Central bank data shows that remittances from overseas Filipinos continue to be robust at billion-dollar level but its year-on-year expansion from April to June this year was lower than in the previous quarter.

In the first three months this year, the strong private consumption and government spending powered the growth of the domestic economy.

Earlier, Socio-Economic Planning Secretary Arsenio Balisacan said he expected second quarter growth this year to be near the 6.4 percent in the first quarter, noting the favorable exports and imports figures and increase in capital outlays of the government.

Exports growth last June slowed to 4.2 percent from month-ago's 19.7 percent. Last April's import growth was at 7.6 percent.

Meanwhile, imports as of last May rose to 10.1 percent from month-ago's -13.6 percent. The full-year target for this year is 12 percent expansion.

The government's 2012 growth target as measured by gross domestic product is five to six percent.*PNA

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