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PH economy needs 'shot in the arm' to meet growth goal: ING

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ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img src="http://sa.kapamilya.com/absnews/abscbnnews/media/2019/news/01/29/voters.jpg"/><figcaption>Filipinos register to vote in the May 2019 midterm elections in this photo taken on Sept. 28, 2018. ING Bank said election-related spending is poised to give economic growth a boost this year. <em>Mark Demayo, ABS-CBN News</em></figcaption></figure></div><p>MANILA -- The Philippine economy needs a &quot;shot in the arm&quot; on the fiscal and monetary fronts to achieve at least the low end of its 7 to 8 percent growth target this year, an analyst said Tuesday.</p><p>Election-related spending is expected to stimulate consumption growth this year, as it did during the 2010, 2013 and 2016 polls, ING Bank senior economist Nicholas Mapa said in a statement.</p><p>Poll-related spending is also expected to deliver &quot;substantial&quot; gains in capital formation, he said.</p><p>&quot;Increased economic activity is expected every time the campaign season begins and 2019 is expected to be no different with polls opening in May,&quot; he said.</p><p>With inflation easing after the Bangko Sentral ng Pilipinas raised the benchmark lending rate by a cumulative 175 basis points last year, the monetary authority has &quot;little reason to keep rates elevated unnecessarily,&quot; he said.</p><p>The economy grew 6.2 percent in 2018, with above-target inflation and high interest rates &quot;sapping&quot; consumption and investment momentum, he said. Gross domestic product grew <a href="https://news.abs-cbn.com/business/01/24/19/philippine-gdp-grows-61-percent-in-q4-as-inflation-eases">6.1 percent</a> in the fourth quarter.</p><div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img src="http://sa.kapamilya.com/absnews/abscbnnews/media/2019/news/01/29/51124194_2115755601814436_5856308326094077952_n.png"/><figcaption>The contributors to economic growth from 1999 to 2018, with a projection for 2019 are shown in this chart from ING Bank. <em>ING Bank/Handout</em></figcaption></figure></div>

<p>Election-related spending is expected to stimulate consumption growth this year, as it did in the last 3 election years 2010, 2013 and 2016, ING Bank senior economist Nicholas Mapa said in a statement.</p>

Election-related spending is expected to stimulate consumption growth this year, as it did in the last 3 election years 2010, 2013 and 2016, ING Bank senior economist Nicholas Mapa said in a statement.