Moody's Analaytics, a division of credit rating agency Moody's Corp, yesterday said that members of the Association of Southeast Asian Nations (Asean) will likely grow but at a slower pace this year,

It, however, singled-out the Philippines, saying that the country will expand at a "breakneck speed".

Earlier, Moody's named the Philippines as "Asia's rising star" and "one of the world's fastest growing economies".

Asean members include Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Vietnam, Singapore, Thailand and Philippines.

Fred Gibson of Moody's Analytics said that Asean countries "are expected to expand a touch below trend in 2013."

"Headwinds from lackluster global demand, particularly out of neighboring China, will weigh on the outlook. Thailand, Singapore, Indonesia and Malaysia all recorded slower growth in the first quarter thanks to mediocre export demand," Gibson said.

"The Philippines, meanwhile, continues to expand at a breakneck pace as the surging domestic economy more than offsets weakness in the export sector," he added.

Gibson said robust investment and household consumption remain the key pillars of growth across the region, a theme they expect to persist for the rest of 2013.

"Higher minimum wages and strong labor markets are supporting consumer spending, while government initiatives across developing Asean and solid foreign direct investment boost infrastructure spending," Gibson said.

Moody's Analytics did not give specific growth forecasts for each country but said that the ASEAN region is forecast to grow 4.8 percent in 2013, a touch below the 5 percent long‐run growth rate. However, Moody's Analytics, in an earlier announcement, forecasts sustained growth for country over the next three years.

They expect GDP growth to remain in the 6.5 percent to 7 percent range in 2013 and 2014, making the Philippines "one of the world's fastest-growing economies."

The forecast is at the higher end of the Philippine government's target of between 6 and 7 percent for this year.

It also sits well with the 2014 target of between 7 and 8 percent.

Of the world's top three credit rating agencies, Standard and Poor's and Fitch has already given the Philippines an investment grade rating.

Moody's currently rates the country a notch below investment grade, after the agency upgraded the country's rating to Ba1 from Ba2 in October, "in recognition of the country's improved economic performance and strengthening prospects over the medium-term."

The country was one out of the only four countries that received an upgrade last year. That was despite the global financial crisis in 2008 and subsequent downturn in advanced countries' economic performance.

The government and other private economists are also expecting an upgrade to investment grade from Moody's anytime soon.

By JIMMY CALAPATI

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