MANILA – First Metro Investment Corporation and the University of Asia & the Pacific said economic growth may have slowed to 6 percent in the first quarter due to weak reconstruction work in Yolanda-hit areas.
They said indicators like electricity sales, industrial production, and tax collection were pointing to slower growth from January to March.
This contrasts with the International Monetary Fund's forecast of higher gross domestic product (GDP) growth of 6.5 percent for the first quarter to be driven mainly by higher government spending, particularly in the reconstruction of Yolanda-hit areas and exports recovery.
First Metro and UA&P expect a rebound in the second quarter, enabling the economy to report above 7-percent growth for the year.
Government's GDP target is from 6.5 percent to 7.5 percent for 2014. -- ANC