The Asian Development Bank (ADB) slashed its 2015 growth forecast for the Philippine economy following the country’s lackluster performance in the first half.
In a report, the multilateral lender said it sees gross domestic product (GDP) expanding by 6 percent in 2015. This projection is down from a July forecast of a growth of 6.4 percent. The forecast for next year of a growth of 6.3 percent was kept.
READ: ADB trims PH growth forecast for 2016
“After a slow start to the year, we are now seeing a pickup in fiscal spending,” ADB country director Richard Bolt said in a statement Tuesday. Election spending ahead of next year’s elections will provide a boost to the economy, ADB said.
READ: PH growth slows to 5.2% | PH GDP grew 5.6% in Q2
Soft global conditions dampened demand for the country’s exports in the first half, keeping economy growth at 5.3 percent. Government spending also fell short of state targets, dragging down overall growth numbers.
ADB’s forecast falls short of the government’s full-year target for the year of at least 7 percent. Meanwhile, the rest of the Asia Pacific region is expected to grow by 5.8 percent.