Philippines GDP growth slowest in three years
The Philippine economy grew 6.2 per cent in 2018, missing the government’s growth target as price increases slowed consumer spending as well as business expansion last year.
The Philippine Statistics Authority reported on January 24 that gross domestic product (GDP) expanded by 6.1 per cent in the fourth quarter after six per cent in the third quarter of 2018, bringing the full-year average below the already downgraded 6.5- to 6.9-per cent goal. It was the slowest expansion rate in three years.
Inflation hit a ten-year high of 5.2 per cent last year due to new or higher excise taxes slapped on consumption, skyrocketing global oil prices during the third quarter, as well as food supply bottlenecks, especially of the Filipino staple rice. Weak exports, manufacturing and farm output added to the challenges.
Notwithstanding, the Philippine government has set an “aspirational” goal of seven to eight per cent GDP growth for 2019. While economist say that recovering consumption and strong government spending should still keep growth above six per cent, more would be quite unrealistic since the 2019 outlook was dampened by sluggish investment prospects, policy uncertainties in the economic sector, the US-China trade dispute and tighter financing conditions in emerging markets.
The United Nations in its World Economic Situation and Prospects 2019 report put the forecast for GDP growth in the Philippines at 6.5 per cent and 6.4 per cent for 2019 and 2020, respectively.
[caption id="attachment_32433" align="alignleft" width="300"] Makati skyline[/caption] The Philippine economy grew 6.2 per cent in 2018, missing the government’s growth target as price increases slowed consumer spending as well as business expansion last year. The Philippine Statistics Authority reported on January 24 that gross domestic product (GDP) expanded by 6.1 per cent in the fourth quarter after six per cent in the third quarter of 2018, bringing the full-year average below the already downgraded 6.5- to 6.9-per cent goal. It was the slowest expansion rate in three years. Inflation hit a ten-year high of 5.2 per cent last year due to...
The Philippine economy grew 6.2 per cent in 2018, missing the government’s growth target as price increases slowed consumer spending as well as business expansion last year.
The Philippine Statistics Authority reported on January 24 that gross domestic product (GDP) expanded by 6.1 per cent in the fourth quarter after six per cent in the third quarter of 2018, bringing the full-year average below the already downgraded 6.5- to 6.9-per cent goal. It was the slowest expansion rate in three years.
Inflation hit a ten-year high of 5.2 per cent last year due to new or higher excise taxes slapped on consumption, skyrocketing global oil prices during the third quarter, as well as food supply bottlenecks, especially of the Filipino staple rice. Weak exports, manufacturing and farm output added to the challenges.
Notwithstanding, the Philippine government has set an “aspirational” goal of seven to eight per cent GDP growth for 2019. While economist say that recovering consumption and strong government spending should still keep growth above six per cent, more would be quite unrealistic since the 2019 outlook was dampened by sluggish investment prospects, policy uncertainties in the economic sector, the US-China trade dispute and tighter financing conditions in emerging markets.
The United Nations in its World Economic Situation and Prospects 2019 report put the forecast for GDP growth in the Philippines at 6.5 per cent and 6.4 per cent for 2019 and 2020, respectively.
