MANILA - Global debt watcher Standard & Poor's (S&P) has lowered its gross domestic product (GDP) growth forecast for the Philippines this year and next year.
In its recent economic research report, S&P lowered its GDP growth forecast to 6 percent this year and 6 percent in 2016.
This year's and next year's adjusted forecasts are lower than the earlier projection of 6.2 percent and 6.4 percent, respectively.
S&P said the Philippines has hit a "soft patch" amid the China slowdown and normalizing interest rates in the US.
"Even the Philippines, one of the star performers, has hit a soft patch," S&P said.
Despite the lower forecast, the Philippine economy is still seen to grow faster than the 4.9 percent for this year and 5.1 percent for 2016 forecast for the ASEAN-4, which includes Indonesia, Malaysia, and Thailand.
Indonesia's GDP is expected to grow 5.4 percent this year and 5.5 percent in 2016 while Thailand is expected to grow 3.4 percent this year and 3.7 percent next year.
"Finally, the ASEAN-4 economies are also seeing subpar growth for a variety of reasons. Indonesia, the largest of this group, has seen growth slide closer to five percent from an average of about six percent in the post-financial crisis period. Growth in Thailand has recovered from the 2014 coup but remains subdued," S&P said.
Economic managers in the Philippines are projecting GDP growth of 7 to 8 percent this year.
In the first quarter, the Philippine economic growth slowed down to 5.2 percent from the 5.6 percent growth in the same quarter last year.
The slowdown was attributed to lower public spending caused by delays in the implementation of infrastructure projects.