The national government budget delay backlash hit the Philippines, hampering its economic growth for the second quarter unexpectedly.
The Philippine economic growth slowed as the gross domestic product is higher by 5.5% from last year’s reference. However, it is .04% lower than the median estimate in a survey of economists conducted by Bloomberg.
The second quarter rate, moreover, is lower than the first quarter expansion with a 5.6% rate.
The national budget for the year was released four months later than it was supposed to be released which forced the national government to lower its target in gross domestic product growth rate to only 6%-7%.
Philippine’s central bank, Bangko Sentral ng Pilipinas, is looking to consider an additional 50 basis points of cuts in interest rates that will take effect this year.