The Philippines Expects 6.5% GDP Growth This Year
Philippine government expects economic growth to remain strong above 6% level this year, as investment and infrastructure spending help counter the impact of higher interest rates. Carlos Dominguez (Philippine Finance Secretary) stated, that the government expects around 6.5% growth for the whole year. Earlier, the Philippines had aspired for a 7%-8% growth this year, but fall of the peso and acceleration of inflation rate made the target unattainable.
Inflation accelerated to 6.7% in September, the fastest pace in more than nine years. The peso has lost about 8% this year, among the worst performers in Asia. The benchmark stock index is heading for its lowest level since December 2016 after a record streak of foreigners’ withdrawals.
Economic growth slowed to a three-year low of 6% in the second quarter, as the Philippines is battling surging prices and a weakening currency that’s forced the central bank to raise interest rates by 150 basis-points since May. Data on Q3 GDP will be released on November 8.