Forex - REVIEW- Philippines Q2 GDP growth missed expectations, eased to a 4-year low


 02:26 (GMT) 08 Aug

  [Economic Data]

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REVIEW- Philippines Q2 GDP growth missed expectations, eased to a 4-year low (0101-NDHD-C01)

The Philippines economy slowed down further in the second quarter. Q2 GDP missed market expectations and rose by only 5.5% y/y, the lowest in about four years. Government spending growth remained soft, as impact of delay in budget approval dragged on. Gross fixed capital extended the downtrend, and fell by 4.5% y/y in Q2 following a rise of 6.4% y/y in Q1. Export growth slowed down further to 4.4% y/y, while import growth was flat.

Disappointing Q2 growth added to economic growth concerns in the Philippines. Bangko Sentral ng Pilipinas (BSP) will announce policy decision later today, with a 25-bps reduction already seen by the markets. However, the recent turn of events such as escalating US-China trade war and prospect of further easing by the Fed have increased the odds of more easing by the Bank. We think that bigger cut such as a 50 bps rate cut is also not ruled out.


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