World Economy

Philippines Expects 6.5 Percent Growth

Government says exports of goods and services are  seen to remain strong.Government says exports of goods and services are  seen to remain strong.

Economic managers expect the Philippines to achieve at least a 6.5% gross domestic product growth this year on the back of sustained robust consumption by both the government and the private sector.

“Given the economy’s performance during the first half of 2017, the lower end of the full year GDP growth target (6.5-7.5%) is well within the reach of government; the economy only needs to grow by 6.5% in the second half to accomplish this. This is also in line with market expectations,” the cabinet-level interagency Development Budget Coordination Committee said in its midyear report on the fiscal year 2017 national budget, PNA reported.

The economy expanded by nearly 6.5% in the first half.

“Household consumption spending will be supported by high consumer confidence and modest inflation. Oil prices are expected to remain moderate as global oil stocks are close to record highs, contributing to subdued energy prices,” the DBCC said.

Also, “government consumption and public construction will further support demand as national government disbursements are expected to improve further in the second half of 2017,” the DBCC added.

President Rodrigo Duterte administration is ramping up infrastructure spending in line with its ambitious “Build, Build, Build” program aimed at introducing the “golden age of infrastructure.”

Under the program, the government will roll-out 75 flagship infrastructure projects, with about half targeted to be finished within Duterte’s term, alongside plans to spend a total of up to P9 trillion ($176.2 billion) on hard and modern infrastructure until 2022.

Economic managers also remain bullish of merchandise and services trade this year, as “exports of goods and services are seen to remain strong due to the recovery of global trade, accompanied by the growth of inbound tourists and strong BPO [business process outsourcing] revenues.”

However, the DBCC said the slowdown in construction investments and related expenses from the private sector should be monitored closely.

Add new comment

Read our comment policy before posting your viewpoints