ADB’s outlook on Philippine economy glooms, cuts 2019 growth forecast to 6.2%
MANILA, Philippines — The Asian Development Bank on Thursday slashed its 2019 economic growth projection for the Philippines amid developments that weighed on the economy in the first quarter.
In a supplement to its Asian Development Outlook report, the Manila-based multilateral lender cut its growth estimate for the Philippines for this year to 6.2% from 6.4% previously.
If realized, ADB’s projection would match the 6.2% actual growth rate registered in 2018, and would settle within the government’s downwardly revised 6%-7% annual target for this year.
For 2020, ADB kept its forecast at 6.4%.
Gross domestic product — or the value of all finished goods and services produced in the country — eased to 5.6% in the first three months of 2019 after a spat among lawmakers stalled the approval of the new national budget, leaving fresh projects unfunded and crimping state spending.
The latest reading was the slowest since 5.1% registered in the first quarter of 2015.
Growth in exports of goods and services also slowed in the first quarter as a result of lackluster global trade and economic activity, although these effects were partly offset by higher household consumption and private investment, ADB said.
“As a consequence of these developments in Q1, the growth forecast is revised down,” the lender explained.
According to ADB, public investment is expected to rebound in the second half of 2019 after the budget bill was signed into law last April.
Meanwhile, slowing inflation, low unemployment and steady remittances will continue to support household consumption, it added.
- Latest
- Trending
