PH economic growth in 2014 expected to fall short of target

Philippine economic growth this year is expected to fall short of the state’s target amid the slump in government spending and the slower-than-expected performance in the first three months of the year.

However, Maybank ATR KimEng, an affiliate of Malaysia’s second-largest bank, said that the Philippines would still “outperform” other Southeast Asian nations that are dealing with political issues.

Indonesia, Malaysia, the Philippines, Thailand, and Vietnam—collectively known as the Association of Southeast Asian Nations (Asean)-5—are expected to grow by 4.7 percent this year and 5.4 percent in 2015. The five countries are the region’s five biggest economies.

The Philippines, for its part, is expected to grow by 6.2 percent this year and 6.3 percent next year.

Both forecasts are below the government’s target ranges.

In 2014, the government wants to drive gross domestic product (GDP) expansion to 6.5 to 7.5 percent. In the following year, the government’s target moves up to a more ambitious range of 7 to 8 percent.

In its note, Maybank ATR KimEng said the government’s ability to drive growth in recent months had been noticeably weak. In the second quarter, the government contributed nil to the economy’s 6.4-percent expansion, which was the fastest in the region. Paolo G. Montecillo