The International Monetary Fund (IMF) has trimmed its growth forecast for the Philippines this year from 6.7 per cent o 6.5 percent due to a slower-than-expected second-quarter expansion.
The trimmed forecast was made as the IMF noted that the country’s gross domestic product (GDP) grew to its slowest in three years in the second quarter this year.
IMF resident representative in the Philippines Yongzheng Yang, however, stressed that the growth dip in the April-June quarter “was temporary”.
“So last year’s growth was 6.7 percent, this year we expect growth to slow down slightly to 6.5 percent which is still one of the fastest. It is still very respectable and pretty strong,” he said.
Yang added that GDP growth is expected to pick up to 6.6 per cent in the third quarter and further to 6.9 per cent in the fourth quarter, driven by robust public and private investment as well as household spending.
Real GDP growth is projected to grow strongly in 2018 and 2019, supported by domestic demand, the IMF said.
Earlier, the Asian Development Bank (ADB) lowered the country’s GDP growth forecasts to 6.4 percent instead of 6.8 percent this year and to 6.7 percent instead of 6.9 percent for 2019. – BusinessNews.ph