By Kris Crismundo/PNA
MANILA — The Philippine economy will continue to grow within the 6-percent level for the rest of the year and in 2019, according to London-based economic think-tank IHS Markit.
In an e-mail Thursday, the firm’s Chief Economist for Asia Pacific Rajiv Biswas said their gross domestic product (GDP) forecast for the last quarter of this year is 6 percent.
Biswas noted that the faster inflation and the rising interest rates in the past months are expected to impact economic growth towards the end of 2018.
He attributed the slower GDP growth in third quarter of the year at 6.1 percent to the same factors, as well as the decline in farm output and impact of Typhoon “Ompong” (Mangkhut) that damages agricultural production and infrastructure.
“The impact of BSP (Bangko Sentral ng Pilipinas) rate hikes will continue to act as a drag on household consumption in coming quarters with Q4 growth likely to moderate to a pace of around 6 percent year-on-year,” the economist said.
So far, the Monetary Board (MB) raised interest rates by 150 basis points this year, since it started to tighten monetary policy last May.
“[T]he Philippine economy is still forecasted to grow at a robust pace of around 6.2 percent in 2019, underpinned by strong construction sector growth, which will be boosted by the ramping up of infrastructure spending under the government’s Build, Build Build Program,” Biswas said.
