MANILA, Philippines — The Philippine economy likely grew 6.7 percent during the last three months of 2017 on account of strong domestic demand, Moody’s Analytics said.

“The Philippines' economy has been a standout in recent years, underpinned by strong domestic demand and favorable demographics,” Moody’s said in its January 18 market outlook.

“Domestic demand likely remained the main driver of growth, with exports also providing lift thanks to strong demand for electronics and components,” it added.

Philippine manufacturing activity further picked up last November to 54.8, posting the biggest surge in 2017 on the back of strong demand for products both locally and abroad, according to monthly tracking done by IHS Markit for Nikkei, Inc.

However, Moody's fourth quarter economic forecast for the Philippines was slower compared to the gross domestic product performance in the third quarter.

The country’s GDP — or the value of all finished goods and services produced in the country — clocked a solid 6.9 percent growth rate in the July-September period of 2017.

The figure puts the economy on track to meet the government's 6.5-7.5 percent full-year target.

Asked for his GDP outlook for the last quarter of 2017, Socioeconomic Planning Secretary Ernesto Pernia earlier said he expects the economy to grow “higher or at least match the third quarter’s performance.”

The government is scheduled to announce the Philippines’ fourth quarter and full-year GDP performance on January 23.

In the same market forecast, Moody’s said growth prospects for the Philippines got a further boost late last year from the enactment of the first tax reform program, which will help fund President Rodrigo Duterte’s ambitious infrastructure program.

“That will go some way to improving the country’s poor infrastructure, which has long prevented the Philippines from reaching its potential,” Moody’s said.

READ: Philippine economy expands by 6.9% in Q3, beating forecasts