The expansion of the Philippine economy is anticipated to accelerate in the latter half of the year, largely due to a projected resurgence in government expenditures following the election-related prohibition, Budget Secretary Amenah F. Pangandaman stated.<\/p>\n
\u201cI remain hopeful. I believe it will reach 6% [in the second half],\u201d Ms. Pangandaman conveyed to journalists during a Department of Budget and Management (DBM) event on Wednesday.<\/p>\n
This projection hinges on the speed of public spending post the electoral ban on infrastructure projects, she mentioned. The 45-day prohibition commenced on March 28 and concluded with the elections on May 12.<\/p>\n
\u201cOur first semester results are merely touching the lower boundary of this program, so we must be experiencing growth of 6% or greater in the latter half,\u201d Budget Assistant Secretary Romeo Matthew T. Balanquit informed BusinessWorld.<\/p>\n
The gross domestic product (GDP) expanded by 5.5% in the second quarter, which was slightly quicker than the 5.4% recorded in the first quarter but slower than the 6.5% from the same period last year.<\/p>\n
For the first half, GDP growth averaged 5.4%, lagging behind the 6.2% recorded a year prior.<\/p>\n
Economy Secretary Arsenio M. Balisacan previously stated that GDP needs to increase by 5.6% throughout the remainder of the year to meet the lower end of the annual target.<\/p>\n
\u201cBetter than the 5.5% in the third quarter. Improved because we resumed operations. We released the NCA (Notice of Cash Allocation). You can observe that agencies have started procurement once more,\u201d Ms. Pangandaman remarked.<\/p>\n
The most recent disbursement report from DBM indicated that government expenditures rose by 21.2% to P578.2 billion in May. This marked a reversal from the 27.8% annual decline experienced in April due to the election ban on public works disbursements.<\/p>\n
The budget department has instructed government agencies to provide their \u201ccatch-up plans\u201d to enhance spending for the remainder of the year.<\/p>\n
\u201cThey are currently submitting proposals to streamline the programs and agency projects. But yes, we\u2019ll receive their catch-up plans shortly and then make them public,\u201d she stated.<\/p>\n
When inquired if she anticipates adjustments to the 5.5% to 6.5% growth forecast for this year, Ms. Pangandaman, who leads the Development Budget Coordination Committee (DBCC), replied: \u201cNot at this moment.\u201d<\/p>\n
The second gathering of economic leaders for this year is expected to be held at the end of September, she noted.<\/p>\n
The DBCC modified macroeconomic projections in July to represent a \u201cmore cautious and resilient perspective amid global challenges.\u201d<\/p>\n
However, Ateneo Center for Economic Research and Development Director Ser Percival K. Pe\u00f1a-Reyes commented that simply increasing spending might not suffice to elevate growth beyond 6% for the latter half.<\/p>\n
\u201cOur projection is below 6%,\u201d he stated in a Viber message, highlighting external uncertainties such as the US tariffs.<\/p>\n
Last month, Mr. Trump implemented a 19% duty on the Philippines, effective August 7.
\nThe updated rate is marginally lower than the 20% that the US had threatened to impose but higher than the 17% tariff announced during the \u201cLiberation Day\u201d in April.<\/p>\n