MANILA — Amid weak state spending, the International Monetary Fund, (IMF) has lowered its outlook for the country’s economy this year to 6.2 percent from 6.7 percent.
Shanaka Jayaneth Peiris, IMF’s resident representative in Manila, said that based on the World Economic Outlook (WEO) for July, the country’s gross domestic product (GDP) was revised downwards owing to weak global demand for exports.
“Real GDP is projected to grow by 6.2 percent in 2015 as lower commodity prices lift household consumption and improved budget execution raises public spending, though slightly lower than expected previously due to weaker global growth and a fiscal deficit below targeted,” Peiris said.
Peiris added in an email to the Philippine Daily Inquirer that the effects of dry weather on agricultural sector also contributed in the projected prospects for the country’s economy.
“The first quarter 2015 slowdown was due mainly to temporary factors, including the effects of dry weather on agricultural production, weak global demand, and slow budget execution,” Peiris said.
The new projections, released on Thursday, showed that the country’s growth would hit 6.7 percent this year and 6.3 percent next year.
The IMF also slashed its global growth forecast for this year from 3.5 percent to 3.3 percent.
It added that the crisis in Greece is seen to create a marginal impact on the global economy.