Illustrative image (Source: cnnphilippines.com) Hanoi (VNA) – The Asian Development Bank (ADB) has recently reducedits economic forecast for the Philippines to 6.2 percent this year from theprevious 6.4 percent.
However, ADB maintainsits estimate of 6.4 percent for 2020 in its Asian Development OutlookSupplement report released on July 18.
The report cited thegovernment under-spending resulting from delayed passage of the national budgetthat moderated economic growth to 5.6 percent in the first quarter.
In the period, publicconstruction contracted while growth in government consumption eased. Growth inexports of goods and services also slowed as a result of lackluster globaltrade and economic activity and the downturn in the electronics cycle. Theseeffects were partly offset by higher household consumption and privateinvestment, it said.
The bank predicted publicinvestment to rebound in the second half of 2019 following budget approval inApril and to pick up next year as more infrastructure projects come on stream.
Meanwhile, slowinginflation, low unemployment, and steady remittances will continue to supporthousehold consumption, it added.
It also revised itsinflation forecast for the Philippines from 3.8 percent to 3 percent this year,considering lower food prices.
Inflation in thecountry slowed down to 2.7 percent in June 2019, averaging 3.4 percent in thefirst half.-VNA
VNA
