Tuesday , August 22 2017

Philippine growth misses forecasts as spending eases

Bloomberg

The Philippine economy expanded less than economists forecast last quarter as government and consu-mer spending weakened. Stocks and the peso fell.
Gross domestic product increased 6.4 percent from a year earlier, the Philippine Statistics Authority said in Manila on Thursday, after expanding 6.6 percent in the fourth quarter. The median estimate of 14 economists surveyed by Bloomberg was for growth of 6.7 percent. Compared with the previous quarter, GDP rose 1.1 percent compared with the 1.5 percent economists had forecast.
The slowdown in government spending signals that President Rodrigo Duterte is struggling to kickstart his ambitious $180 billion infrastructure plan, which the World Bank has said would be the main driver of economic growth this year and next. While expansion is still among the fastest in the world, it is the weakest since 2015.
“It is casting a shadow of doubt on the growth momentum, but it can easily be remedied if the government spends,” said Jonathan Ravelas, chief market strategist at BDO Unibank Inc. in Manila. “Investors are also looking at the tax bill as the next milestone, because you need funds to pay for these projects.”
“The headline number was a little bit disappointing but we have expected some normalization of economic growth, which is not necessarily a bad thing as it minimizes the overheating risk in the economy,” said Gundy Cahyadi, an economist at DBS Group Holdings Ltd. in Singapore. “Government spending was slow; there is a need to accelerate spending to bolster growth.”
Consumer spending, which makes up about 70 percent of GDP, gained 5.7 percent from a year earlier.

About Admin

Check Also

epa03833848 Two women walk past the window's  of the Nasdaq building in Times Square in New York, USA, 22 August 2013.  A problem at the Nasdaq stock market halted trading in all Nasdaq-listed stocks on Thursday, including major names like Apple and Microsoft. Nasdaq sent out an alert at 12:14 p.m. on Thursday telling traders that it was 'halting trading in all stocks listed on the Nasdaq exchange Òuntil further notice.' The exchange said the issue was a result of problems with the system on which trades are recorded. Trading was also halted on all Nasdaq options markets.  EPA/JASON SZENES

Advertisers rip a page from Wall Street playbook to curb fraud

Bloomberg An online advertisement for Lancome lipstick or a Lamborghini might not appear to have ...

Leave a Reply

Your email address will not be published. Required fields are marked *