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MANILA - The Philippine economy likely grew by 4.8 percent in the first quarter of this year, according to Moody's Analytics.
In a report, the unit of Moody's Corp. said the acceleration from the 3.7 percent growth in the fourth quarter of 2011 would be due to higher government spending "as exports remain soft amid weak global demand."
"The government has stepped up infrastructure spending to encourage foreign investment and boost business-process outsourcing," Moody's Analytics said.
Government spending in the January to March period grew 13.1 percent from a year ago, whereas Philippine exports in the same period rose 4.6 percent year-on-year.
Moody's Analytics however expects personal consumption expenditures to have "lost some steam as remittances from Filipinos working abroad eased."
Accounting for 10 percent of Philippine gross domestic product, remittances in the three-month period ending March increased 5.4 percent, lower than the nearly six percent expansion in the same period in 2011.
GDP, which is the amount of final goods and services produced in the country, measures the size of its economy.
The National Statistical Coordination Board will release the official GDP figures for the first quarter on May 31.
The National Economic and Development Authority earlier said the Philippines' GDP in the first quarter likely grew by upwards of five percent.
NEDA forecasts full-year GDP growth of between five and six percent.
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