MANILA: The Philippines gross domestic product (GDP) growth rate projected at 6.5 percent will be at its lowest this year due to the double whammy of inflation and weak local currency.
The Philippines News Agency (PNA) reports this projection Thursday quoting Department of Trade and Industry (DTI) Secretary Gregory Domingo.
Anticipated higher inflation rate in 2014 and weak local currency will pull down the growth rate of domestic output, he said.
"Inflation and exchange rate those two technically will have negative impact in the growth rate. It will pull down the growth rate," said Domingo.
"The forecast of our inflation is slightly higher this year and peso has also depreciated."
"Since it is in dollar terms, there is negative impact in the (GDP) numbers," he said.
The DTI's forecast of GDP growth rate is in line with National Economic and Development Authority’s (NEDA) expected growth rate of 6.5 to 7.5 percent.
However, it is lower than World Bank’s projected GDP growth rate of 6.6 percent. (QNA)