Philippine Central Bank optimistic for faster growth in second half
Francis Dakila said on Monday that the Philippine economy is set to rise in the second half of the year.
While most of the Asian economies are in a slump as the U.S.-China trade war grew bigger, economic growth in the Philippines is ready to take off after figuring its budget delay woes.
“I want to differentiate the Philippines compared to other economies on easing cycle, their economies are slowing down. In the Philippines what we had is slower-than-expected growth, but there’s an identifiable reason for that, which is the budget delay,” Dakila said in an interview.
Many of the central banks in the Asian region have seized the opportunity amid the rising inflation rate to cut interest rates which the Philippine Central Bank also did, cutting the rate by 50 basis points.
The delay in the national budget slowed the economic growth of the country, posting 5.5% in the second quarter, marking its slowest pace in four years. As government spending is no longer hampered, the central bank is expecting the growth to go faster.
“Indications are that for the second half of the year, growth numbers would be better,” the deputy governor said.
Pandemic crisis to hit economic growth in Asia, China, World Bank says30.03.2020
Asian shares plunge due to virus, central banks offer temporary relief30.03.2020
New Zealand central bank increases liquidity for businesses27.03.2020
Reserve Bank of India slashes interest rates in urgent bid to bolster virus-hit economy