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UPDATE 1-Philippines revises 2019-2022 forex assumptions, keeps growth targets

Published 07/18/2019, 05:18 PM
Updated 07/18/2019, 05:20 PM
© Reuters.  UPDATE 1-Philippines revises 2019-2022 forex assumptions, keeps growth targets

* Philippine peso seen appreciating vs the dollar
* Philippines lowers 2019 inflation assumption
* Gov't keeps 2019-2022 growth targets

(Adds more details on economic targets, quotes)
MANILA, July 18 (Reuters) - The Philippines on Thursday
revised its foreign exchange assumptions for its medium-term
macroeconomic targets as it expects the peso to appreciate
against the dollar on positive investor sentiment.
The forex assumption is now 51-53 pesos to the dollar for
2019, and 51-55 from 2020 to 2022, from 52-55, said Janet Abuel,
officer-in-charge at the Department of Budget and Management.
Abuel said the government is expecting the peso to trade
firmer against the dollar "with easing inflation pressures and
positive market sentiment with the recent sovereign credit
rating upgrade of the Philippines". The peso has gained nearly 3% against the dollar so far this
year, and was trading at around 51 on Thursday.
The government also lowered its inflation assumption for
this year to 2.7%-3.5% from 3%-4%, Abuel said.
For 2020, the government will propose a 12% increase in the
national budget to 4.1 trillion pesos ($80.27 billion), equal to
19.4% of gross domestic product, Abuel said, so it could spend
more on infrastructure and support economic growth.
Manila kept its 6.0%-7.0% growth target for this year. Next
year's 6.5%-7.5% growth goal and the 7%-8% percent growth target
for 2021-2022 were also maintained.

($1 = 51.0800 Philippine pesos)

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