The Standard Chartered Bank has recently lowered its forecast for the Philippines’ economic growth in 2015 to 5.7 percent from a previous prediction of 6 percent.
In its “Global Focus” report, the bank has warned as China’s economy continues to slow may unfavourably impact the Philippines’ exports.
The Southeast Asian country has become more reliant on exports to China and Japan over the past 15 years, shifting from a reliance on the United States and the European Union previously.
The bank has showed China now accounts for almost half of the Philippines’ exports, with growth jumping from a figure of just 5 percent in 2000.
However, the bank expects the Philippines’ economy will be improved in the second quarter of 2015 after the first quarter’s weak performance.
According to the bank, steady domestic demand, increased government spending and external demand will faster the country’s economic growth
Earlier, Moody’s Investors Service cut down the country’s growth forecast for 2015 to 6 percent from 6.5 percent.
The International Monetary Fund (IMF) said it is set to review its 6.7-percent growth outlook for 2015 for the Philippines to consider the impact of the weaker-than-expected GDP performance in the first quarter.-VNA
