by: Sarah Joson
Tuesday, August 25, 2015 |
According to the International Monetary Fund (IMF), the Philippine economy gained traction in the second quarter of this year after the slow first quarter. Weak global demand and lack of government spending are the reasons identified for the poor performance of the first quarter.
IMF resident representative Shanaka Jayanath Peiris said improved spending by the Aquino government boosted the country’s gross domestic product in the second quarter. Peiris noted that the economy marginally improved from the first quarter as it is expected to go on the upward trend coming from the decline in exports, and improved government spending.
The Philippines posted a 5.2 percent gross domestic product (GDP) growth in the first quarter of this year - slower than the 5.6 percent posted in the same quarter last year. Reasons cited are the delays in the implementation of much needed infrastructure projects. The actual GDP growth for the second quarter is set to be released.
The IMF made revisions on the country’s GDP growth forecast from the 6.7 percent based on their World Economic Outlook (WEO) last April. It was down to 6.2 percent last July.
WEOs are released by the IMF during the months of April and September or October of every year. A revised version is likewise released every January and July of each year.
Peiris pointed out that the IMF’s GDP forecast for 2015 is 6.2 percent, and they are anticipating that it will slowly pick up until this year’s end.
For the last six months of the year, he said the country’s GDP would still improve as it is still recovering from global demand and seeing higher government expenditures.
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