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Palace: ADB downgrade of PHL growth projections not a surprise


The Asian Development Bank’s (ADB) decision to downgrade the growth prospects for the Philippines did not surprise Malacañang as the government had already anticipated a slowdown as a result of some policy decisions, presidential spokesperson Harry Roque said Wednesday.

The Manila-based lender revised its economic growth outlook for the Philippines to 6.4 percent this year from an earlier outlook of 6.8 percent.

For 2019, the bank revised its growth outlook to 6.7 percent from 6.9 percent.

The ADB cited widening trade gap and slowdown in the agriculture sector and exports as well as higher inflation and global headwinds.

“We expected this slowdown vis-à-vis our growth target for the year, given that certain policy decisions, such as the closure of Boracay and the full implementation of our comprehensive tax reform package which would benefit the country in the long-run, contributed to the deceleration,” Roque said in a statement.

Roque assured the public that the country’s macroeconomic fundamentals are “resilient, strong and stable,” pointing to ADB’s updated outlook that the Philippines’ growth remains one of the highest in Southeast Asia.

“Our economic managers are committed to the country's long-term vision and are swiftly addressing issues affecting our growth prospects to sustain high growth and make it inclusive,” he said.

The Duterte administration has set a growth target of 7.0 to 8.0 percent from 2018 to 2022. —NB, GMA News

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