Low end of GDP goal seen possible — DoF

IMPROVED household spending and base effects could boost the economy in the second half, helping the government meet the lower end of its 5.5% to 6.5% growth target, the Department of Finance (DoF) said.

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“We do think maybe the growth will be faster (in the second half) to be able to meet at least the 5.5%” Finance Undersecretary and Chief Economist Domini S. Velasquez told BusinessWorld on the sidelines of an event on Friday, referring to the lower end of the target range.

Ms. Velasquez said household consumption, which accounts for over 70% of the economy, will remain the key growth driver, aided by easing inflation and lower interest rates.

Inflation eased to a nearly six-year low of 0.9% in July, bringing average inflation in the first seven months to 1.7%.

“Now that we're in the first half at 5.4%, we think we'll be able to reach at the minimum 5.5%. Part of it is due to base effects since our growth was low in the second half last year,” she said.