MANILA (UPDATED) – Economic growth likely accelerated in the April to June period compared to the previous quarter, but still below the government's target, due to "far from ideal" export numbers, an economist said Thursday.
Gross domestic product likely grew 5.8 percent in the second quarter, from 5.6 percent in January to June and below the government's 6 to 7 percent range, Philippine National Bank economist Jun Trinidad told ANC's Market Edge.
Official GDP numbers for the second quarter are due out next week.
Growth will likely rebound in the second half as consumption and stimulus spending recover, Trinidad said. The failure of lawmakers to pass the 2019 budget in time dragged in first quarter GDP growth.
"The key uncertainty there is how significant export volume would be contributing to the GDP growth in the second quarter," Trinidad said.
Trinidad said the Bangko Sentral ng Pilipinas will have room to cut interest rates by 25 basis points in August with more cuts likely towards the end of the year.