Global debt watcher S&P Global Ratings on Wednesday reduced its growth forecast for the Philippines this year to 6.1 percent from the previous estimate of 6.3 percent made in April, taking into account the delay in the approval of national budget for 2019 that weighed on GDP in the first quarter.
In a report titled “APAC Monthly Snapshots: Trade Wars and Currency Concerns,” S&P expects the Philippine economy to grow within the 6-percent to 6.5-percent range in 2019.
“We continue to expect GDP growth to come in at the low end of the 6 percent-6.5 percent range in 2019, with a likely resumption of the infrastructure build in the second half of the year to bring the fiscal impulse for the year to around neutral after being negative in the first half of the year,” it said.
GDP growth in the first quarter was rcorded a lower-than-expected 5.6 percent due to delays in passing the budget as well as weak external demand.
But S&P said the labor market still appeared strong, with unemployment falling.