MANILA, Philippines — The Philippines is likely to underspend its budget in 2019, although the fiscal deficit is expected to settle near the government’s budget cap due to slower-than-expected revenue growth, a Fitch Group unit reported Tuesday. Meanwhile, Fitch also warned that the Philippine economy might be overheating due to loose fiscal and monetary policies. In a report sent to reporters, Fitch Solutions Macro Research said the country’s budget deficit as a share of gross domestic product is expected to come in at 2.9 percent in 2019, unchanged from its 2018 estimate. The Philippine government’s fiscal deficit program was set at 3 percent of GDP in 2018, 3.2 percent for this year, and 3 percent in 2020 until 2022. “Downside risks to macroeconomic stability are rising as a result of loose fiscal and monetary policies, although the Philippines remains on good standing for now,” Fitch Solutions said.

Source: Philippine Star January 08, 2019 12:27 UTC