Philippines misses economic growth target for 2nd straight year

Philippine economic growth accelerated in the last three months of 2019 but it was still not enough to meet the government's full-year target, the Philippine Statistics Authority (PSA) reported Thursday.

Economic growth was recorded at 6.4% in the fourth quarter of 2019, which compares with the downward-revised 6.0% in the third quarter of the same year and the upward-revised 6.3% in the fourth quarter of 2018.

This brought the full-year growth to 5.9%, falling short of the government's target range for the second consecutive year, even with the downward-revised goal of 6.0% to 6.5% for 2019.

It is also the slowest in eight years, since the gross domestic product (GDP) grew by 3.7% in 2011, under then-President Benigno Aquino III.

"We have seen our economy facing several challenges right at the start of 2019 as the budget impasse led to delays in the implementation of government programs and projects," Socioeconomic Planning Secretary Ernesto Pernia said at a press conference in Pasig City.

Last year's P3.757-trillion national budget was signed into law by Duterte only on April 15, 2019 with P95.3-billion worth of programs vetoed as these items were "not part of the President's priority projects."

The government blamed this for the slowdown in economic growth which was registered at 5.6% in the first three months of 2019, the slowest in four years since the 5.1% in the first quarter of 2015.

"Adding to the problem was the election ban on certain, mainly infrastructure, projects," said Pernia.

Pernia also noted the effects of the El Niño phenomenon that dampened growth in the first half of the year, as well as the unrest of Taal Volcano and the onslaught of typhoons in the latter part of the year.

"We now need to significantly improve the absorptive capacity of government agencies for faster implementation and completion of key social programs and infrastructure projects," he said.

"We also need to swiftly address issues such as the difficulty in the acquisition of right-of-way, delays in procurement, restrictive auditing rules, and skills shortages," added Pernia.

Moving forward, Pernia said the government is optimistic to achieve its goal of 6.5%-7.5% for this year.

"We are optimistic of the prospects ahead of us as we remain committed to put in place better strategies and to deepen reforms," he said. 

Presidential spokesperson Salvador Panelo shared the same sentiment.

“‘Pag bumaba wala nang ibang punta kundi umakyat, so why worry?” he said at a news conference in Malacañang on Thursday.

“I think we have competent economic managers. They are doing their job very well," Panelo added, noting the President's economic team was able to stabilize inflation last year. —with Virgil Lopez/NB/KBK/RSJ, GMA News