Security Bank Corp., the sixth-largest lender in terms of assets, expects the Philippine economy to perform better in the second half of the year as the government is bent on accelerating fiscal spending.
SBC president and chief executive Sanjiv Vohra said in a news briefing in Makati City Thursday the gross domestic product growth could hit the low-end of the target range of 6 percent to 7 percent for 2019.
“It also depends on what is happening in the environment. But it is likely to be better… 6 percent overall for 2019,” Vohra said.
Economic growth in the first half averaged 5.6 percent, below the target range because of the delayed approval of the national budget for 2019.
Vohra said inflation might continue to be benign which could augur well for the economy going forward.
Inflation in the first seven months slowed to 3.3 percent from a peak of 6.7 percent in October 2018.
“Capital formation will be strong and there will be a rebound of household spending. We are seeing better spending in the second half—a good sign for the economy,” Vohra said.