by: Sarah Joson
Monday, July 13, 2015 |
Global debt watcher Standard and Poor’s has lowered its GDP growth forecast for the Philippines to six percent both for 2015 and 2016.
The agency’s initial projections are 6.2 percent for 2015, and 6.4 percent for next year. The China slowdown and normalizing interest rates in the US drove the Philippines, a seasoned star performer in the region, into a “soft patch”.
However, the Philippine economy is still anticipated to grow above the pegged 4.9 percent growth this year, and 5.1 for 2016. As for the rest of the ASEAN-4, which includes Indonesia, Malaysia, and Thailand, it is anticipated that Indonesia’s GDP will grow 5.4 percent this year and 5.5 percent in 2016. Thailand, on the other hand, is seen to grow 3.4 percent this year, and 3.7 next year.
S&P also noted that ASEAN-4 economies are experiencing slow growth due to several factors. Indonesia, for instance, has dropped from an average of six percent, to five percent in the post-financial crisis period. Thailand, on the other hand, is still recovering from the 2014 coup.
Economists in the Philippines have given a more optimistic GDP growth projection of 7-8 percent this year.
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