Philippines Macroeconomist/Strategist

Jun Trinidad

Macroeconomics

Summary:
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With a 2Q primary surplus, the 1H18 fiscal backdrop flagged waning fiscal stimulus due to better- than-programmed revenues eclipsing better-than-programmed primary (non-interest) expenditures. Lackluster fiscal stimulus probably resulted in slower 2Q GDP growth.
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<li>
Per IMF advice to curb the budget deficit to 2.4% of GDP (1H: -2.3%/CY18 target: -3%), restraint on the fiscal stimulus moving forward will contribute to attaining macro stability but at the expense of robust growth.
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Amid…
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</ul>

Summary:


With a 2Q primary surplus, the 1H18 fiscal backdrop flagged waning fiscal stimulus due to better- than-programmed revenues eclipsing better-than-programmed primary (non-interest) expenditures. Lackluster fiscal stimulus probably resulted in slower 2Q GDP growth.


Per IMF advice to curb the budget deficit to 2.4% of GDP (1H: -2.3%/CY18 target: -3%), restraint on the fiscal stimulus moving forward will contribute to attaining macro stability but at the expense of robust growth.


Amid…



Philippines Stock Exchange PSEi Index (PCOMP INDEX)

Philippines: Revenue Overperformance Dissipates 2Q18 Fiscal Stimulus