S&P further cuts growth forecast for Philippines

ABS-CBN News

Posted at Jun 27 2019 03:42 PM | Updated as of Jun 27 2019 04:54 PM

MANILA - Debt watcher S&P Global Ratings has further cut its growth forecast for the Philippine economy this year following slower than expected expansion in the first quarter following the impasse over the national budget.

The Philippines is now seen growing at 6.1 percent this year, down from the previous estimate of 6.4 percent back in April.

For 2020, S&P sees the country growing at 6.4 percent, slightly lower from the previous 6.5 percent forecast.

The debt watcher cited the delay in the passage of the 2019 national budget as well as the escalating trade tensions between the US and China as some of the reasons for the cut.

Congress, however, managed to settle the budget impasse, and President signed it into law on April 15 but with vetoed items amounting to P95 billion.

The Philippine economy expanded 5.6 percent in the first three months of the year, its slowest quarterly pace in four years.