Philippine GDP Growth Trimmed

Barcelona-based think tank FocusEconomics has slashed the gross domestic product growth forecast for the Philippines to 6.4% instead of 6.5% this year due to the impact of the terrorist attacks in Mindanao, Yahoo reported. Weak private consumption due to the absence of election-related spending pulled down the GDP growth of the country to 6.4% in the first quarter. Despite this, economic managers through the cabinet-level Development Budget Coordination Committee retained the GDP growth target at 6.5 to 7.5% this year from 6.9% last year. The think tank, however, retained next year’s GDP growth forecast at 6.4%. “The economy should continue to grow robustly this year and next, supported by buoyant domestic demand, a strengthening external sector and broad macroeconomic stability,” it added. It pointed out the ongoing decline in the public debt-to-GDP ratio and a sustainable fiscal deficit guarantee room-for-maneuver in case of an unexpected downturn. “The economy remains on a firm footing, underpinned by solid macro fundamentals and an improvement in the external environment,” FocusEconomics said.