MANILA — The ANZ Bank has lowered its economic growth forecast for the Philippines this year.
This is owing to the anemic spending by the current administration. The bank slashed the gross domestic product forecast to 5.7 percent instead of 6.1 percent this year and to six percent instead of 6.3 percent next year.
“Public spending continued to disappoint in the first half of 2015, which led to a year-to-date budget surplus of P13.8 billion, far from the annual target deficit of P283.7 billion,” the investment bank said.
According to a data from the Department of Finance, the country’s budget surplus reached P13.8 billion in the first six months of the year, reversing the P54 billion deficit recorded in the same period last year.
“Thus, we now believe the government’s deficit target of two percent of GDP is no longer attainable and we downgrade our 2015 fiscal deficit forecast to 0.08 percent of GDP,” the investment bank said.