Philippines GDP Misses Expectations as Inflation Bites

The Philippine economy grew less than expected in the second quarter amid rising inflation, according to figures released on Thursday. The Philippines’ gross domestic product rose 6 per cent year on year in the three months through June, well short of the 6.7 per cent median forecast from a Reuters poll of economists and down from revised first-quarter GDP growth of 6.6 per cent, the Financial Times reported. Officials in the Philippines said on Thursday that rising inflation had undercut growth in the second quarter and that the economy would now need to see GDP growth of 7.7 per cent in the second half of the year to hit the government’s annual target of between 7 and 8 per cent, according to wire reports. Amid the growing price pressures the Philippines’ central bank is likely to hike its policy rate at its meeting later on Thursday, Capital Economics analysts said ahead of the data release. Read more. (Subscription required.)