The Asian Development Bank (ADB) has maintained its growth forecasts for the Philippines as it expects the economy to accelerate in the fourth quarter and through the rest of 2020.
In a supplement to its Asian Development Outlook 2019 Update released in September, the ADB said yesterday it expects the Philippine economy to grow by six percent and 6.2 percent this year and next, respectively, the same figures from its previous report.
“GDP (gross domestic product) growth is seen accelerating in Q4 of 2019 and throughout 2020, supported by investment as more infrastructure projects come onstream,” the ADB said.
“Accommodative fiscal and monetary policies will support domestic demand. Growth forecasts are maintained at six percent for 2019 and 6.2 percent for 2020,” the agency added.
The ADB also maintained its inflation outlook of 2.6 percent for 2019 and three percent for 2020.
To recall, GDP growth in the Philippines picked up to 6.2 percent in the third quarter, boosting growth in the first three quarters to 5.8 percent.
“The pickup was supported by a rebound in government expenditure, particularly on infrastructure. Sustained robust private consumption, rising by 5.8 percent in the first three quarters, made the largest contribution to growth,” the ADB said.
“Investment declined by 0.8 percent following brisk 16.5 percent growth in same period of last year, as buoyant construction was mostly offset by lower investment in transport equipment and machinery. Weaker external demand trimmed export growth, with imports also easing in line with subdued demand for materials for export-oriented manufacturing,” the agency added.