Chase gives Philippines bearish view
Beleaguered Philippine stocks are unlikely to get much joy from the economy next year, according to Chase Manhattan Bank.
Growth is expected to slow from this quarter onwards on the global slowdown in demand for electronics, a key export for the Philippines.
Chase downgraded its growth forecast for next year from 4 per cent to 3 per cent while warning headline inflation would rise from 7 per cent this year to 8 per cent next year. Rising inflation would make it hard for interest rate cuts to be made to revive growth.
Philippine stocks have plunged 34.51 per cent for the year to date with the impeachment trial of President Joseph Estrada adding to investors' worries over the economy.
Chase expected Mr Estrada could get enough support in the senate to defeat the impeachment motion but his escape would be a new blow for the already weak peso.
