PH missed 2018 GDP growth goal due to high prices

MANILA, Philippines — The Philippine economy grew 6.2 percent in 2018 , missing the government’s growth target as the increase in prices slowed consumer spending as well as business expansion last year.

The Philippine Statistics Authority (PSA) reported Thursday that the gross domestic product (GDP) expanded by 6.1 percent in the fourth quarter of 2018, bringing the full-year average below the already downgraded 6.5-6.9 percent goal.

Last year’s GDP expansion was also lower than the 6.7 percent posted in 2017.

To recall, inflation or the rate of increase in prices of basic commodities hit a 10-year high of 5.2 percent last year due to new or higher excise taxes slapped on consumption, skyrocketing global oil prices during the third quarter, as well as food supply bottlenecks, especially of the Filipino staple rice.

Socioeconomic Planning Secretary Ernesto M. Pernia had admitted that inflation was the “spoiler” to the economy’s growth potential in 2018.

The government targets a higher 7-8 percent GDP growth in 2019.  /muf