MANILA – The World Bank said Monday it lowered its growth forecasts for the Philippine economy, citing the threat of El Nino and the failure of lawmakers to pass the 2019 national budget.
Gross domestic product will likely grow by 6.4 percent this year instead of 6.5 percent, and 6.5 percent in 2020 instead of 6.6 percent, World Bank senior economist Rong Qian said.
“While external risk remains high, domestic risk are intensifying given the delay in the approval of the budget,” Qian said.
“Intensified El Niño may lead to supply constraints affecting the poor and vulnerable the most,” she said.
The World Bank’s outlook for the Philippines remains “positive” due to cooling inflation and election-related spending, she said.
The delay in the passage of the 2019 budget “will have an impact on investment, but there could be a recovery in the second half once it is passed, she said.
Manila should be “prudent” with fiscal management and monetary policy to preserve consumer and business confidence, she said. (ABS-CBN News)
