The Asian Development Bank has cut its growth forecasts for the Philippines for the next two years and raised inflation projections for 2018 and 2019 as recent moves to temper high consumer prices would take time to show results.
Notwithstanding the expected slower gross domestic product (GDP) growth amid elevated prices, Kelly Bird, the ADB’s country director for the Philippines, highlighted a more investment-led Philippine economy, which he said augured well to sustaining expansion in the medium term.
In its Asian Development Outlook 2018 Update report released Wednesday, the Manila-based lender downgraded its 2018 GDP growth projection for the Philippines to 6.4 percent from 6.8 percent previously, owing to the “unexpected softening” of first-half expansion to 6.3 percent following the three-year low 6-percent growth in the second quarter.
Bird blamed slower agricultural output, lower net exports as imports surged, as well as higher inflation for the downgraded outlook.
BUSINESS
BUSINESS
BUSINESS
For 2019, the ADB also cut its growth forecast to 6.7 percent from 6.9 percent previously.
But for Bird, “6.4 percent is still a very robust economic growth rate” for this year.
