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Philippine economic growth slows in Q2

  • Aug 08, 2019

MANILA, Philippines — The Philippine economy grew slower than expected in the second quarter of the year amid a sluggish rebound in state spending after the late approval of the 2019 budget, the country’s statistics agency reported Thursday.

Gross domestic product — the value of all finished goods and services produced in the country — expanded 5.5%, softer than 5.6% clocked in the first quarter.

The latest reading was the weakest in 17 quarters. 

At a press conference, Socioeconomic Planning chief Ernesto Pernia said the economy would have to grow by an average of 6.4% in the second half to hit the low-end of the state’s 6%-7% annual target.

A four-month delay in the passage of the 2019 national budget — which froze new government projects and crimped disbursements — and the public works ban ahead of the May elections sapped economic growth to a four-year low in the first quarter.

Some analysts had expected the impact of the reenacted 2019 budget to carry over in the April-June period amid a slow recovery in state spending.

This is a developing story

Source: https://www.philstar.com/business/2019/08/08/1941648/philippine-economic-growth-slows-q2#3wlh2c1q8tYjXOJu.99