Slow trade impacts Philippines GDP numbers, household spending the bright spot

MANILA- Second quarter GDP growth in the Philippines has come in at 5.6%, just short of market expectations. An acceleration in household spending to 6.2% y/y (from 6.0% in Q1) offset a slowdown in investment growth due to delays in public spending.

ANZ Bank says net exports detracted from growth even more as the Philippines succumbs to the regional trade recession.
“Amid the slowdown in growth, Arsenio Balisacan, the Government’s chief economic planner, conceded that the growth target of 7-8% will likely be scaled down to around 6.0-6.5% in 2015,” ANZ says, adding that the bank expects to see full-year GDP growth of 5.7% for 2015.
“Despite the quarterly improvement in public spending, the persistent delay in infrastructure delivery has put a dampener on growth,” ANZ says. It believes the Government will be able to increase fiscal spending by the end of the year.  www.live.anz.com (ATI).