The Asian Development Bank (ADB) raised its Philippine growth forecast, making the country a standout as the agency cut its projections for most Asian economies.
According to the ADB, economic growth in the Philippines is accelerating because of domestic demand, investment, low inflation and interest rates, as well as strong remittances.
The Philippine economy grew 7.6% in the first half of the year.
The ADB said growth in the country could be sustained through increased government spending. However, the bank noted that the Philippines remains challenged in creating jobs to spread the benefits of growth with Filipinos who have less formal education.
It also warned the Bangko Sentral to curb lending to avoid forming bubbles.
The rest of Asia meanwhile are projected to have slower than expected growth as the United States slowed down its economic stimulus.
Earlier, the US government began a shutdown as Congress failed to agree on a new budget.