Peso
• Previous week: The local currency hit a downslide during the week over worries on economic developments in other economies. The local currency started the week at 47.65 to a dollar to depreciate by two centavos on the following trading day at 47.67 to a dollar. The largest decline was seen on Wednesday, causing the peso to depreciate to 47.89 to a dollar. The lowest point of the peso was on Thursday at 47.94 to a dollar. The peso ended the week at 47.805 to a dollar.
• Week ahead: While the Bangko Sentral said volatilities are likely to persist in the local financial markets due to turbulent developments in the international markets, BSP Governor Amando M. Tetangco Jr. said the country has the tools to ride out these headwinds. In addition, the BSP also said the peso weakness is seen to be “very temporary,” owing to other factors affecting the economy.
GDP
• Previous quarter: The country’s economic growth rebounded to 6 percent in the third quarter of the year. Among the three major economic sectors, services gave the highest contribution to the GDP growth in the third quarter with 4.2 percentage points. This was followed by industry, with 1.8 percentage points, while agriculture contributed a mere 0.03 percentage points.
• Fourth quarter of 2015: Economists forecast a cooling of the country’s GDP in the last three months of the year—making the ambitious growth target significantly out of reach for the year. Earlier in the week, Moody’s Analytics said the country’s growth is set to hit 5.9 percent in the fourth quarter of the year. This is slightly lower than the 6-percent growth posted in the third quarter of the year. If fulfilled, the country’s full-year GDP growth will likely average at 5.7 percent in 2015, lower than the 6.1-percent average in 2014.