Moody’s Analytics said in a note that first quarter gross domestic product came in stronger than expected, with more momentum promised after the lifting of mobility restrictions and capacity limits on many establishments.
“Exports have been supportive as elsewhere in the region. Policy statements from President-elect Ferdinand Marcos, Jr. indicate that infrastructure investment will accelerate as the focus returns to the ‘Build, Build, Build’ policies of the Duterte administration,” Moody’s Analytics said. For its part, Nomura Global Markets Research said one specific drag on the recovery is the rising cost of food.
The CPI basket of goods has a nearly 39% weighting for food, according to the Philippine Statistics Authority. Households in poor countries tend to devote a larger share of their spending on food.
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