The Philippines last quarter capped its strongest two years of growth since the 1950s, when the U.S. ally enjoyed a post-war reconstruction boom, as it lured foreign investment and put money into infrastructure.
The Philippine economy grew more than economists estimated as higher public spending and consumption spurred the strongest six-month performance since the 2010 bounce-back from the global crisis. The peso gained.
Farmer Rene Ravalo loads coconuts onto a truck in the Philippines for the 30-minute trip to market on a road built last year. It previously took half a day for a water buffalo to inch the goods down a mountain track.
Indonesia’s rupiah fell to 10,500 per dollar for the first time since 2009, stocks dropped by the most in 22 months and government bonds plunged after the current-account deficit widened to a record last quarter.
Central banks in Southeast Asia may be forced to abandon this year’s monetary easing and raise interest rates before their north Asian peers in 2013, as rising inflation risks overshadow the current economic gloom.