PH Growth In 2019 Slower Than Last Year – Think Tank
Various domestic phenomenon such as the measles outbreak, the delay in the passage of 2019 budget, export slowdown, higher interest rates, water shortage, and the effects of El Niño is said to have contributed to the slower economic growth in the country compared to last year, according to the think tank Foundation for Economic Freedom (FEF).
FEF President Calixto Chikiamco said during Security Bank Economic forum in Makati City, that the growth will be playing between 5.8 percent to 6.2 percent, a range lower than 2018’s actual figure.
In 2018, economic growth slowed to 6.2 percent, a little behind the figures in 2017 which are 6.7 percent. In addition, it was already behind their set target which was supposed to be 6.5 to 6.9 percent. This year, the government is targeting a full-year gross domestic product (GDP) print of 6 to 7 percent.
Despite the contribution of election spending to the country’s economic activities, the domestic challenges that the country has faced early this year will definitely impact the growth for 2019. Inflation will also moderate this year, but the growth will decelerate slightly below target (6.2 percent).
Growth still remains stellar, though, as the country will be seen growing at a rate between 5 to 7 percent (higher than most neighboring countries) in the next few years, depending on the further economic measures, added Chikiamco.