MANILA — Bangko Sentral ng Pilipinas Governor Eli Remolona said on Friday that the most recent economic growth number was disappointing, though “not that bad”.
- The Philippine economy grew 2.3% in the second quarter from a year earlier, its weakest pace since 2021, due to a slump in the construction sector and softer domestic demand.
- “So, with the growth numbers and with inflation numbers, I think we need a more convincing downward trend for inflation before we can relax,” Remolona said in a speech, describing the output as “somewhat surprising”.
- “The weaker growth that we’re seeing means we can be less aggressive in trying to tame inflation.”
- Growth in the second quarter brought first-half expansion to 2.6%, below the 3.5% to 4.5% target for the year.
- The government has set a gross domestic product growth target of 5.0% to 6.0% for the 2027 to 2030 period.
- Annual inflation slowed to 6.2% in July from the previous month’s 6.4% rate due to lower transport costs.
- The central bank raised its policy interest rate by 25 basis points in June to keep inflation in check, and will review monetary policy on August 27.
—Reporting by Nestor Corrales; Editing by John Mair, Martin Petty
