Growth in the Philippines this year will be lower than previously forecast due to the energy crisis and the lingering effects of a corruption scandal that has slowed government spending, the economic planning secretary said on Monday.
Growth is now seen coming in at 3.5 per cent to 4.5 per cent this year, below the government’s already lowered forecast of 5.0 per cent to 6.0 per cent, Balisacan said in an interview with One News.
He said the cut reflected slower spending in the aftermath of corruption allegations related to flood control projects and rising inflation driven by higher global oil prices.
The economy grew 2.8 per cent in the first quarter from a year earlier, lower than forecast.The central bank raised rates for a second straight meeting last week, a move Balisacan said was justified to ensure elevated inflation does not become persistent.
While annual inflation eased to 6.8 per cent in May from 7.2 per cent a month earlier, it remained well above the central bank’s 3.0 per cent target.
Balisacan said a government inter-agency panel responsible for setting medium-term fiscal and economic goals had met recently to review the targets, and the outcome will be released soon.
Reuters
