Domestic demand driving GDP growth in Philippines

Philippines's November2015 import growth came in at 10.1% (YoY) earlier this week, remains indicative of a strong domestic demand. In particular, the imports of capital goods continue its upward trend. Total investment growth is likely to remain robust, near 9% this year, even if we were to factor in some slowdown in government projects ahead of the elections,. 

Today's GDP report is likely to reinforce the strong domestic demand story. It is still questionable if the economy can maintain its 6% trend growth in the mediumterm. On this front, the presidential elections in the middle of the year will be the crucial event to watch out for. 

For the most part though, the economic roadmaps of the leading candidates are similar. The focus seems to be in line with President Aquino's economic platform, until more details are out, which is a further diversification of the economy through public-private partnerships.