(Bloomberg) -- Philippine economic growth unexpectedly slowed last quarter as belated approval of the budget failed to get government spending off the ground.
Gross domestic product expanded 5.5% in the second quarter from a year ago, lower than the 5.9% median estimate in a Bloomberg survey of economists. That’s down from 5.6% expansion in the first quarter.
The second-quarter growth figure could influence the central bank decision on monetary policy later Thursday. Almost all of the 26 economists in a Bloomberg survey predict a 25-basis point cut to the benchmark rate as cooling inflation gives policy makers room to support the economy.
Key Insights
- A four-month delay in approving the budget -- finally passed in April -- prompted the government to lower its 2019 GDP growth target to 6%-7%, from 7%-8%
- Earlier this week, Bangko Sentral ng Pilipinas Governor Benjamin Diokno said he sees room for an additional 50 basis points of interest-rate cuts this year
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