The PHL economy likely grew more than 6% in the second quarter – finance chief

THE PHILIPPINE ECONOMY probably grew faster in the second quarter amid better government spending and increased household consumption, the Department of Finance (DoF) said.

“If you talk about the growth rate for the second quarter, I think we are quite optimistic. It will be higher than the Ffirst (quarter),” Treasury Secretary Ralph G. Recto told reporters on the sidelines of an event late Tuesday.

In the FIn the first quarter, gross domestic product (GDP) grew by a weaker-than-expected 5.7% due to slower consumption and government spending.

Mr. Recto said he is “overstepping his bounds Fforecast” that GDP growth would be above 6%, driven by consumption, government spending and lower growthFlat.

The government is targeting GDP growth of 6 to 7% this year.

Head inFInflation fell to 3.7% in June due to slower growth in energy and transport costs, ending four consecutive months of acceleration.

Last week, National Economic and DevelopmentSecretary of the authority Arsenio M. BaliSacan said GDP growth in the April to June period was likely to be at the lower end of the government’s target of 6-7%.

The Philippine Statistics Authority is expected to release second-quarter GDP growth data on August 8.

Jonathan L. Ravelas, senior advisor, professional services Firm Reyes Tacandong & Co. forecasts GDP growth of 6.1% in the second quarter, driven by infrastructure spending and a recovery in private spending.

However, he expects full-year growth to average 5.8% this year and 6.3% in 2025.

IBON Foundation director Jose Enrique A. Africa said state expenditure growth could be subdued in the second quarter due to debt repayments.

“The stimulative effect of higher government spending is also reduced to the extent that it is spent on debt servicing or on imported materials, equipment or contractors for infrastructure projects,” he said in a Viber message.

The national government’s bill, which covers government payments on its domestic and foreign debts, rose 48% to P1.22 trillion from January to May from P819.53 billion a year ago. — Beatriz Marie D. Cruz