By Joann Santiago
MANILA, July 9 (PNA) — An economist of ING Bank Manila sees a six percent growth of the Philippine economy in the second quarter of this year.
“Growth prospect remain favorable with government already showing promising spending performance,” ING Bank Manila Senior Economist Joey Cuyegkeng said in a research note.
Cuyegkeng’s output forecast for the domestic economy from April to June this year was below the government’s seven to eight percent growth target for 2015-16 but was better than the 5.2 percent it churned it in the first quarter.
Domestic growth in the first three months of the year slowed from quarter-ago’s 6.6 percent due to slowdown in government spending as well as weaker net exports.
However, Cuyegkeng noted that average three-month fiscal spending growth up to April was almost double at 10 percent from the first quarter figure of 5.1 percent.
Bureau of the Treasury (BTr)data show that government spending last April rose nine percent year-on-year to Php 156.5 billion from year-ago’s Php 143.6 billion.
“We expect that the May fiscal balance would continue to show the improvement in government spending growth,” he added.
Earlier, Budget and Management Secretary Florencio Abad said he expected second quarter output this year to be better than the previous quarter as government expenditures increase due to implementation of infrastructure projects set for this year as well as those delayed from last year.
He, however, declined to elaborate. (PNA)