The Asian Development Bank (ADB) has reduced its economic growth forecast for the Philippines to 6 percent for this year.
This was contained in the Asian Development Outlook (ADO) 2016, which was launched by the Manila-based agency on Wednesday. In its ADO 2015 Update, the ADB projected the Philippine gross domestic product (GDP) to expand by 6.3 percent in 2016.
Donghyun Park, ADB's principal economist, said that the downgrade on Manila's growth projection was part of "broader downgrade from developing Asia's outlook."
"I must emphasize again and again the very uncertain, difficult and challenging global environment that we're facing," he said.
Sona Shrestha, ADB's principal economist for the Philippines, said Philippine economic growth will be buoyed mainly by private consumption, coupled with election-related spending and government spending. Filipinos will vote for their new leaders in May.In 2017, the Philippines' GDP is seen to rise by 6.1 percent, she added.
Inflation is forecast to trend up this year to average 2.3 percent, from 1.1 percent in the first two months of 2016, ADB said.
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