Macroeconomic Forecast Philippines

April 2006 | Macroeconomic Forecasts

Philippine economic growth in 2006 will fall to its slowest rate in five years, according to BMI forecasts. Real GDP will expand by 4.5% amid rising real interest rates and subdued external demand for the country's exports. The central bank, the Bangko Sentral, left overnight borrowing and lending rates on hold for the sixth month in a row at its regular policy meeting on April 6, but nominal borrowing costs are set to rise due to an expected decline in inflation, which we see falling to an average 6.7% from the previous year's 7.7%. During the fourth quarter of 2005, the economy expanded by 6.1%, taking growth for the year to 5.1%. The government expects growth of 5.7-6.3% in 2006.

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