ADB revises Philippine growth forecast lower to 6.2%
Delay in the approval of the 2019 budget and slower pace of exports have led to the Asian Development Bank ( ADB) to revise its growth forecast for the Philippines to 6.2 percent from 6.4 percent.
The ADB's Asian Development Outlook Supplement released Thursday said:''Public investment is expected to rebound in the second half of 2019 following budget approval in April and to pick up next year as more infrastructure projects come onstream.''
''Slowing inflation, low unemployment, and steady remittances will continue to support household consumption,'' the ADB added.
The ADB kept 2020 growth forecast at 6.4 percent.
''Growth moderated in the Philippines from 6.3 percent year-on-year in Q4 of 2018 to 5.6 percent in Q1 of this year as the delayed passage of the national budget held back government spending,'' said the ADB report.
It said public construction declined 8.6 percent while growth in government consumption eased from 12.6 percent year-on-year in Q4 of 2018 to 7.4 percent in Q1 of 2019.
Exports of goods and services slowed due to ''lackluster global trade and economic activity and the downturn in the electronics cycle.''
''These effects were partly offset by higher household consumption and private investment. As a consequence of these developments in Q1, the growth forecast is revised down to 6.2 percent for 2019, though maintained at 6.4 percent for 2020,'' the bank said. DMS