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MANILA -- The Philippine economy will continue to grow faster than its Asian peers this year, notwithstanding global and local risks, HSBC said Monday.

Inflation is easing and is likely to settle at less than 4 percent at the end of the year, but growth could be affected by possible oil and food price shocks, said Frederic Neumann, HSBC managing director and co-head of Asian economics research.

The failure of the US and China to settle their trade spat could deal financial markets with a "confidence shock." Slowing growth in China, Japan and Europe could weigh on exports, he said.

"The Philippines will lead in absolute growth terms," Neumann told ANC's Market Edge. Consumption will likely pick up in Indonesia, he said.