The Philippine economy is seen growing within the range of 6-6.5 percent this year amid easing inflation but slower growth in external trade.
The Cabinet-level Development Budget Coordination Committee (DBCC) narrowed the 2019 gross domestic product (GDP) growth target to 6-6.5 percent from 6-7 percent previously, abandoning the higher end of the earlier goal.
“For the year, we’re actually proposing a tighter band because we already have the first-quarter to third-quarter numbers—if we say it’s 6-7 percent, then it’s no longer credible given that we already have the first three quarters,” National Economic and Development Authority Undersecretary Rosemarie Edillon told reporters.While the DBCC kept the 2020 growth goal at 6.5-7.5 percent, it downscaled the target ranges for 2021 and 2022 to 6.5-7.5 percent from 7-8 percent previously.
Meanwhile, the Asian Development Bank (ADB), In its Asian Development Outlook Supplement report issued on Wednesday, kept its 2019 and 2020 GDP growth forecasts for the Philippines of 6 percent and 6.2 percent, respectively.“GDP growth is seen accelerating in the fourth quarter of 2019 and throughout 2020, supported by investment as more infrastructure projects come onstream. Accommodative fiscal and monetary policies will support domestic demand,” the Manila-based multilateral lender said.
During the first three quarters, GDP expansion slowed to an average of 5.8 percent as the government underspent on public goods and services at the start of the year due to the delayed approval of the P3.7-trillion national budget.
The ADB also maintained its 2.6-percent and 3-percent inflation projections for this year and next—both within the government’s 2-4 percent target range. —Ben O. de Vera