Election-tied spending may shield growth from tariffs

HOUSEHOLD CONSUMPTION during the election period and state expenditures once the ban on spending on certain infrastructure projects is lifted are expected to cushion the effects of higher US tariffs on Philippine economic growth.

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"We project that the impact of US tariffs can be offset by election spending activities and lifting of the ban on certain public works after the elections," Budget Secretary Amenah F. Pangandaman told Business-World in a Viber Message last week.

Ms. Pangandaman, who heads the Development Budget Coordination Committee (DBCC), said government capital spending is likely to accelerate in the coming quarters.

The Commission on Elections' 45-day ban on public works spending started on March 28 and ended with the May 12 elections.

The Philippine economy grew slower than expected in the first quarter at 5.4% from 5.9% a year earlier. It was below the government's 6-8% target for the year.