Economic growth momentum rests on budget passage: analyst

ABS-CBN News

Posted at Nov 11 2019 11:24 AM | Updated as of Nov 11 2019 12:52 PM

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MANILA – The Philippine economy can grow higher than 6 percent as long as the 2020 budget is passed on time, an analyst said Monday.

Gross domestic product grew 6.2 percent in the third quarter on the back of a recovery in government spending that was weighed down by the delayed approval of the 2019 budget.

Increased liquidity in the market is also "very good for a healthy 2020," Security Bank executive vice president and head of wholesale banking Edu Olbes told ANC.

“I think there’s been lessons learned in terms of the delayed budget approval last year and so we see government acting to put budget approvals in place in a more timely way,” Olbes said. 

“Our hope is that as long as government expenditures in infrastructure, which basically benefit the construction sector, as those expenditures come online then you should see benefits ripple up across the economy,” he said.