Fitch Solutions Predicts Philippine Economy to Grow 6% in 2019, Achieving 2019 GDP Growth Target
ILLUSTRATOR Roland Mae Tanglao
Market intelligence group Fitch Solutions has raised its previous Philippine economic GDP growth outlook in 2019 from an initial 5.7 percent to 6.0 percent, which will achieve the lower end of the government’s 6 to 7 percent target range.
According to Fitch Solutions, the raised forecast rides on the local economy’s strong Q3 performance, which rebounded from the low 5.5 percent Q2 growth to a solid 6.2 percent growth in Q3.
“The Philippines bounced back in Q319, with government expenditures regaining ground faster than we had anticipated,” said Fitch Solutions in an economic report.
Q3's 6.0 percent growth rate was the highest of the year, after Q1 grew by only 5.6 percent and Q2 grew by only 5.5 percent. Filch Solution’s predicts that, despite the low performing first half of 2019, the economy will be able to achieve the government’s 6 to 7 percent target, and thus the needed 6.7 percent growth in Q4 in order to attain the low end of the target.
Filch Solutions also predicts that Q4 will be buoyed by strong government consumption and expenditures and rising domestic confidence.
However, the market intelligence group expects growth to struggle in 2020 and predicts the economy will grow by only 6.1 percent, just 0.1 points higher than the expected 2019 growth.