S&P keeps Philippine growth forecast at 6.4 pct

ABS-CBN News

Posted at Aug 22 2017 05:03 PM

MANILA - Debt-watcher S&P Global Ratings said Tuesday it kept its 6.4 percent growth forecast for the Philippine economy this year, with the expansion driven by consumption and investments.

Gross domestic product will expand at the same pace in 2018 before picking up to 6.6 percent in 2019 and to 6.7 percent in 2019, S&P Global said.

"Consumption and investment remain the main drivers, a testament to the solid demographic trends that are benefiting the country," S&P said.

S&P slashed its 2017 growth forecast for the country to 6.4 percent from 6.6 percent last July after first quarter GDP growth fell short of expectations.

Economic growth picked up to 6.5 percent in the April to June period, exceeding expectations as public spending offset a slowdown in investments.

External factors like rising protectionism overseas, geopolitical tensions and uncertainty in financial markets are risks to growth, while the threat of a possible spillover of fighting in Marawi appeared to have receded significantly, it said.

Last April, S&P affirmed the country's 'BBB' rating, a notch above investment grade, with a stable outlook.