Philippines face battle to hit growth goal amid global headwinds

Growth last year fell to lowest rate in 3 years on inflation at decade high

The Philippine central bank raised rates in five straight meetings last year in an attempt to stem rising consumer prices. A delayed importation of rice also contributed to higher prices and pulled down growth

MIKHAIL FLORES, Nikkei staff writer

January 24, 2019 12:55 JST

MANILA -- Headwinds such as stubborn inflation and the U.S.-China trade war have stacked the odds against the Philippines achieving its growth target of 7%-8% in 2019.

The Southeast Asian nation is seeking to regain momentum after high inflation and weak consumption dragged growth down to 6.2% in 2018 -- the slowest in three years and lower than the government's 6.5-6.9% target range. Data released Thursday showed a 6.1% expansion in the fourth quarter that fell short of analyst expectations.