Q4 growth to pick up to 6.6% ING !-- -- (The Philippine Star) - December 6, 2019 - 12:00am MANILA, Philippines Dutch financial giant ING Bank said Philippine economic growth may pick up further in the fourth quarter amid the catch up in government spending after the delayed implementation of the 2019 national budget.

Nicholas Mapa, senior economist at ING Bank Manila, said gross domestic product (GDP) growth may accelerate to 6.6 percent in the fourth quarter from 6.

2 percent in the third quarter. The economy grew by 5.

8 percent from January to September. With the strong recovery in the second half, Mapa said the lower end of the government's six to seven percent GDP growth target would be achieved.

"The Philippine economy hit a speed bump in the first half, but has since recovered as a heavy dose of consumption and revamped government spending offset still moribund capital formation," he said. For next year, the economist said the Dutch financial giant expects the Philippine economy to grow by 6.

5 percent, the lower end of the government's 6.5 to 7.

5 percent target, even in the face of global headwinds. "Fiscal spending working in tandem with additional easing from the BSP will help the Philippines hit its growth targets for both 2019 and 2020, even as external headwinds threaten the global economy," he said.

According to ING, double-headed stimulus through fiscal and monetary policy would help carry the country's economic growth, even in the face of global headwinds. Furthermore, Mapa said parallel budgets could ensure fiscal punch is potent, while base effects would boost spending in 2020. The economist pointed out household spending would remain vibrant next year as inflation would remain well-behaved with the implementation of Republic Act 11203 or the rice tarriffication law as well as better weather forecast.

As a result, Mapa said the BSP's Monetary Board would further slash interest rates by another 50 basis points as it chases the government's 6.5 to 7.

5 percent target. "BSP easing will help restore lost investment momentum as Governor (Benjamin) Diokno reverses previous rate hike cycle," he added.

© Pakistan Press International, source Asianet-Pakistan