Reenacted budget, global slowdown weigh on PH growth — World Bank
Credit to Author: The Manila Times| Date: Mon, 01 Apr 2019 04:09:20 +0000
THE Word Bank on Monday lowered its 2019 Philippine economic growth forecast to 6.4 percent from the previous 6.5 percent, owing to several factors that include the delay in the approval of the national budget and the slowdown of global trade that may lead to weaker demand for Philippine exports.
In its Philippines Economic Update (PEU), Word Bank also lowered the 2020 and 2021 projections to 6.5 percent from the previous estimate of 6.6 percent.
Despite the lower forecasts, Mara K. Warwick, World Bank Country Director for Brunei, Malaysia, Philippines and Thailand said that the country’s growth outlook “remains positive.”
“Higher private consumption due to lower inflation, steady growth of remittances, and election spending will fuel growth this year. Growth in public investment will be tempered in the first half of 2019 but is expected to recover in the second half of the year,” added Warwick.
World Bank Senior Economist Rong Qian said that in the short term, key priorities for sustaining growth included prudently managing fiscal and current account balances and preserving consumer and business confidence.
“As government ramps up spending to implement its inclusive growth agenda, it would need complementary reforms to increase revenue and ensure that the country’s finances are sound and sustainable,” she said. ANNA LEAH E. GONZALES
The post Reenacted budget, global slowdown weigh on PH growth — World Bank appeared first on The Manila Times Online.