PH economy headed towards 3rd year of slow growth — IBON
PH economy headed towards 3rd year of slow growth — IBON
By IBON Media
Research group IBON said that the Philippine economy is on its way to a third straight year of slowing economic growth under the Duterte administration. The group said that while the economy registered higher growth in the third quarter of 2019, the factors behind this are too weak and unsustainable.
The government recently reported 6.2% gross domestic product (GDP) growth in the third quarter of 2019. National Economic and Development Authority (NEDA) secretary Ernesto Pernia said that this means the Philippine economy is “surging” and was confident that the government could meet its 6% full-year growth target for 2019.
IBON said however that annual economic growth has been slowing since the start of the Duterte administration, falling from 6.9% in 2016, to 6.7% in 2017 and to 6.2% in 2018. The group said that GDP growth in the fourth quarter of 2019 would need to be at least 7.4% just to match growth in 2018.
In the last four decades, the economy was only able to achieve 7.4% growth in the fourth quarter just once (in 1989), said the group. IBON also noted that the 6.2% third quarter growth spurt is higher than the 5.5% of the previous quarter and 6% in third quarter 2018. However, it is much lower than its peak 7.2% first quarter 2017 growth.
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