May 16, 2019
Philippine GDP growth likely to fall below 6% in 2019
The growth of the Philippines’ GDP is likely to drop below 6% for all of 2019, as growth in the country’s economy in the first quarter fell below expectations, according to UK-based Oxford Economics. The prediction was made despite speculations that the Philippine economy is expected “to gain some traction in the coming quarters with the budget impasse behind us and expansionary macro policies lending support,” according to UK-based Oxford Economics. Thatchinamoorthy Krshnan, assistant economist at Oxford Economics, said the risks are to the downside following renewed worries on the US-China trade dispute. Meanwhile, London-based Capital Economics said the country’s disappointing first-quarter growth is just one of the issues that will plague the Philippine economy. Alex Holmes, Capital Economics’ Asia economist, said a tough external environment and the effects of monetary tightening mean growth is likely to struggle to beat 6% this year. The country’s first-quarter GDP growth was 5.6%, the slowest in four years, due to the government’s underspending at the start of the year because of a budget impasse in Congress.