The Philippines continues to enjoy remarkable economic development this year, notably the investment-grade ratings it received and increased government competitiveness index. On May 30, 2013, the Philippine Gross Domestic Product (GDP) was 7.8% in the first quarter of 2013, the fastest in Asia.

British investment banking giant Barclays raised its Philippine economy growth forecast for the third time this year, taking into account the strong first quarter output.

“GDP rose 7.8 percent year-on-year in the first quarter, and even assuming some moderation in that pace, we raise our 2013 growth  forecast 60 basis points, to 6.8 percent,” Barclays said in its research note “Global Economics Weekly” released over the weekend.

In May, Barclays raised its 2013 Philippine growth forecast to 6.2 percent from a revised 5.9 percent forecast in January. Initially, the British bank saw Philippine output hitting 5.6 percent this year.

Barclay’s latest forecast is near the higher-end of government’s 6 to 7 percent growth goal. “Growth remains solid,” according to the bank.

Barclays also sees GDP growth in 2014 easing to 6.5 percent—an upward adjustment from its previous forecast of 6.3 percent.

The investment bank noted inflation will remain low at 3.8 percent and 4.1 percent for 2013 and 2014, respectively. “Inflation remains contained in the Philippines,” the bank said, noting “well behaved” food prices, which accounts for the bulk of the consumer price index.

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