The Asian Development Bank kept its growth forecast of 6.8 percent for the Philippines this year and 6.9 percent in 2019.
“Sustained growth momentum was attributed mainly to accelerated spending on government infrastructure development and other programs to develop human capital,” the ADB said in a supplement to its Asian Development Outlook 2018 report released in April.
“As part of the ongoing tax reform, a reduction in personal income tax for most of the workforce
will boost disposable income and consumption. With these assumptions, this supplement maintains the growth outlook at 6.8 percent in 2018 and 6.9 percent in 2019,” the ADB said.
It said the Philippines was among the economies in the Asia-Pacific region that would not be affected by the rising trade tensions between the United States and its trading partners.
The ADB said growth in Asia and the Pacific would likely reach 6 percent in 2018 and 5.9 percent in 2019, in line with its previous projections.
“Although rising trade tensions remain a concern for the region, protectionist trade measures implemented so far in 2018 have not significantly dented buoyant trade flows to and from developing Asia,” ADB chief economist Yasuyuki Sawada said in a statement.