Philippine economy
In a report, the ASEAN+3 Macroeconomic Research Office, or AMRO, slashed its 2019 growth estimate for the Philippines to 6.3% from 6.4%.
The STAR/Miguel de Guzman
Regional think tank cuts Philippine growth projections
(Philstar.com) - July 23, 2019 - 6:29pm

MANILA, Philippines — A regional think tank on Tuesday trimmed its growth outlook on the Philippine economy for this year and next, as Southeast Asian countries reel from lackluster manufacturing and export.

In a report, the ASEAN+3 Macroeconomic Research Office, or AMRO, slashed its 2019 growth estimate for the Philippines to 6.3% from 6.4%.

For 2020, AMRO expects the Philippine economy to expand 6.5%, lower than its earlier forecast of 6.6%.

Aside from the Philippines, other countries in the region that experienced a downgrade were Malaysia, Myanmar, Singapore and Thailand.

“AMRO staff have revised baseline forecasts downward, following continued weakness in manufacturing and export outturns,” the think tank said.

“Despite the weakening economic outlook, foreign portfolio capital flows to regional emerging markets (EMs) spiked up in June, driven mainly by bond inflows,” it added.

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.

Last week, the inter-agency Development Budget Coordination Committee, or DBCC, said they still aspire to hit their goal of 6-7% growth rate for this year.

Growth target for 2020 was kept at 6.5-7.5%. From 2021 until the end of the Duterte administration in 2022, policymakers still expects the economy to expand 7-8%. — Ian Nicolas Cigaral

PHILIPPINE ECONOMY
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