by: Sarah Joson
Thursday, January 22, 2015 |
Cuts were made by the International Monetary Fund (IMF) for the Philippines’ 2014 economic growth estimate due to sluggish government spending and weak agricultural product output. However, forecast for this year remained positive as the country is expected to overtake global and regional growth.
IMF is one of the organizations that slashed 2014 estimates for the Philippines. Other financial institutions in the list are the World Bank and the Asian Development Bank, pegging the gross domestic product (GDP) at 6.0 percent from previous forecasts of 6.4 percent and 6.2 percent. In addition to that, the United Nations Economic and Social Commission for Asia and the Pacific docked its outlook from 6.7 percent to 6.0 percent.
Shanaka Jayanath Peiris, IMF Resident Representative to the Philippines, said lower government spending and agricultural output hampered the growth of the first three quarters, resulting to a 5.8 percent GDP last year. The results were lower than the outlook of 6.2 percent for October and even lower than the 7.2 percent in 2013 and 6.8 percent in 2012.
However, it was found that the country’s growth rate for 2014 is still faster than the 3.3 percent average seen for the global economy, and is greater than the 4.5 percent prediction for the Philippines, Indonesia, Malaysia, Thailand, and Vietnam, also known as the ASEAN-5.
The GDP growth average of the Philippines was 5.8 percent during the first three quarters of 2014, which is lower than the 6.5-7.5 percent predictions for 2014. The Philippine economy is also said to have expanded at its slowest pace in over five years from July to September at 5.3 percent.
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