ING economist: PNoy underspending cutting economic growth

A senior economist of Amsterdam-based ING Bank NV said the Aquino administration’s “underspending" in the name of good governance has cut down the country’s economic growth. At the Dutch Investment bank’s mid-year economic briefing, Joey Cuyegkeng said the country lost about 1.8 percent in growth because government spending declined 10.7 percent to P591.04 billion in January to May this year. Gross domestic product grew only 4.9 percent in the first quarter. Cuyegkeng said he foresees even more spending cuts, with the projected budget deficit likely shrinking to P256 billion. That, Cuyegkeng estimates, will improve the country’s deficit-to-GDP ratio to 2.7 percent from 3.2 percent. http://www.gmanews.tv/story/214430/business/phl-2011-budget-deficit-to-reach-p300b-dof Cuyegkeng also said GDP growth will settle at 5.2 percent this year and slip to 5.1 percent in 2012. These figures are slightly above the International Monetary Fund forecast of 5 percent but much lower than Aquino economic planners’ projections of 7 percent and 8 percent. — ELR/VS, GMA News