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Weak consumption, public spending likely weighed on Q2 growth
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BusinessWorld Online
By Katherine K. Chan, ReporterTEPID CONSUMER and government spending likely slowed Philippine economic growth for a fourth consecutive quarter in the second quarter, analysts said.
Germany-based Deutsche Bank Research sees the country’s gross domestic product (GDP) growth at 2.5% in the April-to-June period, while Fitch Solutions unit BMI gave a 2.7% forecast.
For Deutsche Bank Research economists, growth may have weakened for a fourth straight quarter as inflation woes strained consumer spending and state spending remained sluggish.
“Fiscal disbursements remained slow, with the public expenditure run-rate of 46.7% as at June YTD lagging the 5-year average of 47.7%,” Deutsche Bank Research economists noted in a July 31 report.
Maybank Chief Economist Suhaimi Ilias and Economist Azril Rosli noted that the central bank will likely prioritize containing inflationary pressures despite a weak growth backdrop.