Election, SEA Games to boost PH economy
Credit to Author: TYRONE JASPER C. PIAD| Date: Fri, 10 May 2019 16:19:19 +0000
The country’s economic growth is seen to accelerate in the remaining months of 2019 due to the projected hike in spending as a result of this year’s elections and the Philippine hosting of the upcoming Southeast Asian Games.
“Businessmen see the balance of the year positive because of consumer spending,” Philippine Chamber of Commerce and Industry (PCCI) President Alegria Limjoco told The Manila Times on Friday.
Alegria noted that the nationwide polls and the global sporting event will spike economic spending which is expected to contribute to the country’s over-all growth.
Philippine economic growth was at its lowest in four years during the first quarter of the 2019 when the gross domestic product (GDP) slumped to 5.6 percent from 6.3 percent in the previous quarter and 6.5 percent a year ago.
Authorities blamed the slowdown to the delay in the approval of the 2019 budget.
“Our 2018 ended with a momentum. However, with the delay in the budget, [there were] less Build, Build, Build projects,” the PCCI chief explained.
The Department of Trade and Industry (DTI) agreed that the budget delays led to fewer infrastructure programs in the first quarter.
“Public construction declined from double digit growth of +22.6 percent in the first quarter of 2018 to -8.6% in the first quarter of 2019,” Trade Secretary Ramon Lopez said Friday.
Meanwhile, the PCCI welcomed the improved credit rating given by debt watcher S&P Global Ratings to the Philippines, owing to its robust economic growth track and good government fiscal accounts standing, among others.
The chamber said the development could mean lower interest rates for loans and easier access to funds for infrastructure projects. Monetary authorities recently trimmed interest rates by 25 basis points as inflation improved to 3 percent in April.
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