Philippines Economic Growth To Pick Up In Second Half: ADB

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Philippines' economic activity will pick in the second half of the year supported by the government's fiscal measures and a gradual global recovery, the Asian Development Bank said Tuesday.

The Manila-based bank said Philippines would expand 2.2% in the second half of this year, after posting a lower-than-expected growth of 1.1% in the first half. For the full year, the bank expects a growth of 1.6%, slightly below its March projection of 2.5%, and thereafter rising to 3.3% in 2010.

"A sharper than anticipated slowdown in private consumption in the first half of 2009, coupled with a slump in exports and weak investment environment, has cut the growth rate more than expected", the bank said.

However, some positive factors remained in the form of a steady growth in remittances and business process outsourcing services, stability in domestic financial markets and strength in external liquidity position. Further, recent improvements in business and consumer sentiment were also encouraging, the ADB added.

(Market News Provided by RTTNews)