by: Sarah Joson
Tuesday, September 01, 2015 | Outsourcing News |
According to Daniel Martin, senior Asia economist at Capital Economics, data for the second quarter, though faster, still fell short of their anticipated growth, which is why they have set a growth of 5.7 percent instead of six percent.
Due to weak global demand and lack of government spending, economic growth during the second quarter of this year is 5.6 percent, far from the 6.4 percent recorded in the same period last year.
Despite the improving government spending and robust domestic consumption, minimal movement was seen in the second quarter, even though it was faster than the revised five-percent growth pegged in the first quarter.
Regional economist Raul Bajoria of British-owned investment bank Barclays said they slashed its GDP growth outlook for the country to 5.5 percent instead of 6.5 percent this year as government spending remains weak and indefinite external demand. But, the economist noted that even with the lower growth forecast, the Philippines is still cited as one of the fastest-growing economies among the major ASEAN countries this year.
Jeff Ng, economist at Standard Chartered Bank Southeast Asia, said the Philippines is expected to post a growth of 5.7 percent this year and six percent in 2016 as the domestic economy remains intact. In fact, local consumption surpassed other ASEAN nations’ figures over the last five years.
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