Philippines GDP grows 6.4% in 4Q, falls short of 2019 target

​Philippine economic growth accelerated further in the fourth quarter after the government boosted infrastructure spending

Philippine economic growth accelerated further in the fourth quarter after the government boosted infrastructure spending.

Gross domestic product expanded 6.4% in the October to December period, picking up pace from 6% in the third quarter, the Philippine Statistics Authority said in a briefing in Manila.

The showing matched the median forecast among 23 economists surveyed by Bloomberg.

The recovery wasn’t enough to power GDP growth to meet the government’s 6%-6.5% target for all of 2019. Economic growth averaged 5.9% last year.

Key Insights

A delay in passing the national budget in 2019 limited government spending and weighed on GDP growth in the first half of the year.

Spending has since rebounded, particularly for infrastructure projects, and is expected to continue after the government extended the validity of last year’s spending plan and approved the 2020 budget on time.

The Philippine central bank is prepared to cut its key interest rate by another 25 basis points in the first quarter of the year, despite inflation quickening in December, Governor Benjamin Diokno said Jan. 7.

The ongoing eruption of Taal volcano near Manila is not expected to dent economic growth in the first quarter, with farm and property damage limited to surrounding towns, Planning Secretary Ernesto Pernia said Jan. 15. 

Source: Bloomberg 

Posted on : 23 January 2020
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Last Updated : Thursday 21st May 2020