By Vittorio Hernandez

Manila, Philippines

Credit Suisse downgraded the growth forecast for the Philippine economy for the rest of 2011 to 4.3 percent from 4.6 percent.

The Swiss financial services company attributed the downgrade to a more obvious slow down in the Philippine economy in the coming months, particularly with the failure of public-private partnership infrastructure projects to get off the ground immediately.

The less optimistic outlook would also be the likely result of lower remittances from overseas Filipino workers and export. Because of the government under-spending, Credit Suisse said the Philippine second quarter gross domestic product would be below expectations at 3.4 percent.

The Philippine government is reviewing its growth target after the economy registered a 3.4 percent growth in Q2, below the target of 4.5 to 4.5 percent economic expansion. At that growth rate, the Philippines is considered one of the weakest performers in Asia.

In late August, Philippine Central Bank Governor Amando Tetangco Jr. forecast that inflation rate for that month would range from 3.9 to 4.8 percent. For July, a 4.6 percent inflation rate was registered.

Tetangco said the central bank is monitoring unrest in the Middle East and North Africa, the economic conditions in the U.S. and Europe, and investor appetite in terms of how the first two developments would affect the direction and volume of capital flows.


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World - Credit Suisse Downgrades Forecast for Philippine Economic Growth to 4.3 Percent | Global Viewpoint