Philippine economy seen picking up in Q3, S-E Asia still resilient

MANILA (REUTERS) - The Philippines is expected to report on Wednesday that economic growth accelerated in the third quarter, defying the global downdraft and a further sign of resilience in a region where robust domestic demand is helping to offset export weakness.

Economists polled by Reuters forecast the economy grew by a seasonally adjusted 0.4 per cent in July to September, twice as fast as in the previous three months, although weaker than the first quarter's two-year-high rate of 3.0 per cent.

On an annual basis, the economy may have expanded 5.4 per cent in the third quarter From a year earlier, weaker than the second quarter's revised 6.0 per cent climb, but still one of the fastest growth rates in the world.

While South-east Asia has not been totally immune to the global downturn - slowing exports are weighing on industrial production - strong private and public spending is driving robust growth in most of its economies, making the region a magnet for foreign investors.