ADB revises Philippine growth targets from 6.8% to 6.4%

September 26, 2018

The Asian Development Bank (ADB) has revised its economic growth outlook for the Philippines to 6.4 percent for 2018 and 6.7 percent for 2019 as gross domestic product (GDP) growth softened unexpectedly in the first half of this year.

In an update of its flagship annual economic publication, Asian Development Outlook (ADO) 2018 on Wednesday, ADB’s revised outlook for the Philippines—from 6.8 percent in 2018 and 6.9 percent in 2019—reflects a moderation in agricultural output and exports, as well as higher inflation and continued global monetary tightening.

Inflationary pressures are expected to taper off next year as tighter domestic monetary policy begins to take effect, according to the report.

“The Philippines’ growth outlook remains stable despite moderating slightly in the first half of the year, as the country’s economic fundamentals are strong,” said ADB Country Director for the Philippines. Kelly Bird. “We’re expecting growth to slowly pick up as public investment in infrastructure and social sectors accelerate and key economic sectors continue to perform solidly.” DMS