DEBT watcher S&P Global Ratings trimmed anew its Philippine growth forecast for 2019 to 6 percent from 6.1 percent as it took into account the lower first-half expansion.
The debt watcher’s revised outlook for the country’s economy is its third this year from the initial 6.4 percent.
The latest projection is lower than last year’s gross domestic product (GDPP) actual growth of 6.2 percent and falls at the lower end of the government’s downwardly revised 6.0-7.0 percent target.
“Sentiment in the private domestic economy appears to have taken a significant hit over the past two quarters, which combined with a negative fiscal impulse in the first half to produce sub-6 percent year-on-year growth for the first two quarters,” S&P said.
The country’s GDP in the first half of the year stood at 5.5 percent, well below the government’s target range.
“The second half of this year could see some acceleration in growth to bring the overall figure to 6 percent for 2019, largely driven by a significant ramp-up in public investment as the government tries to catch up with its infrastructure plans,” the credit rater said, going forward. MAYVELIN U. CARABALLO