by: Sarah Joson
Wednesday, June 3, 2015 |
It is anticipated that the International Monetary Fund (IMF) and other investment banks could be lowering their growth forecasts for the Philippines this year. This week, shares fluctuated as the market starts to worry over the final growth outlook.
The Philippine Stock Exchange index (PSEi) dropped 118.41 points or 1.54 percent and closed at 7,551.96. On the other hand, All-Shares index dropped 49.51 points or 1.13 percent to 4,347.86.
According to Astro del Castillo, Managing Director of First Grade Finance Inc., trading was slightly affected by the slow first quarter GDP, and was worried over a potential cut in projections for the Philippine economy this year.
During the first quarter, GDP is up by 5.2 percent, which is far from the six-percent growth pegged by economists and a 7.3-percent projection by the IMF. Growth momentum also slowed down from the already updated 6.6-percent growth in the preceding quarter, and the 5.6-percent growth posted during the same period last year.
Del Castillo added that investors were concerned over the non-stop downgrades for the country’s GDP by select institutions, particularly the IMF.
Following the “significant negative surprise in the first-quarter” figures, the IMF is set to reevaluate its 2015 projections for the Philippines for the next World Economic Outlook (WEO) forecast.
According to Metrobank Research, the country’s GDP could further weaken as El Nin~o continues to pose a threat to the agricultural output of the country, which could then affect consumer prices in this year’s remaining six months.
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