Connect with us

Business and Economy

Increased infra spending to boost GDP growth to 7.5% this year

Published

on

FILE:  “The infrastructure spending is quite crucial in the faster growth this year,” University of Asia and the Pacific (UA&P) economist Dr. Victor Abola said in a press briefing on Thursday.  (PNA Photo)

FILE:
“The infrastructure spending is quite crucial in the faster growth this year,” University of Asia and the Pacific (UA&P) economist Dr. Victor Abola said in a press briefing on Thursday.
(PNA Photo)

MANILA — The Philippines is expected to remain the best performing economy in the region expanding by 7 to 7.5 percent in 2018, on the back of massive infrastructure spending, said the investment banking arm of the Metrobank Group.

“The infrastructure spending is quite crucial in the faster growth this year,” University of Asia and the Pacific (UA&P) economist Dr. Victor Abola said in a press briefing on Thursday.

Abola said the government’s “Build, Build, Build” program is “credible”, as spending on infrastructure surged more than three times from PHP175.4 billion in 2011 to PHP847.2 billion in 2017.

“That should more than double by 2022. The big jump really occurs in 2018 where we expected (the infrastructure spending) to be 6.1 percent of gross domestic product (GDP). That’s the government side,” he said.

The Duterte administration plans to spend PHP1.898 trillion for infrastructure by 2022, bringing the infrastructure spending as a percentage of GDP ratio to 7.4 percent.

First Metro Investment Corp. (FMIC) president Rabboni Francis Arjonillo noted that with the passage of the Tax Reform for Acceleration and Inclusion (TRAIN) law, the “Build, Build, Build” infrastructure program is expected to be full steam ahead, which “will surely drive economic expansion further.”
“All engines of growth are up and running at a faster pace. The country’s economy will remain as the best performing in ASEAN, we are experiencing a demographic sweet spot that will continue to push consumption expenditure, there’s a revival in manufacturing, and the country’s external position is strong,” he said.

The FMIC said strong domestic demand and accelerating investments would boost economic growth this year.

Heightened private capital spending, a rebound in exports, stable overseas Filipino workers (OFWs) remittances and business process outsourcing (BPO) revenues and tourism boom are also projected to push growth, it said.

“We don’t see signs of external weakness and property bubble,” added Abola.

The Philippine economy grew 6.7 percent in the first three quarters of 2017 on the back of the recovery in external demand, boosting the achievement of the government’s full-year growth target of 6.5 to 7.5 percent.  (PNA)

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Maria in Vancouver

Lifestyle2 weeks ago

Nobody Wants This…IRL (In Real Life)

Just like everyone else who’s binged on Netflix series, “Nobody Wants This” — a romcom about a newly single rabbi...

Lifestyle3 weeks ago

Family Estrangement: Why It’s Okay

Family estrangement is the absence of a previously long-standing relationship between family members via emotional or physical distancing to the...

Lifestyle2 months ago

Becoming Your Best Version

By Matter Laurel-Zalko As a woman, I’m constantly evolving. I’m constantly changing towards my better version each year. Actually, I’m...

Lifestyle2 months ago

The True Power of Manifestation

I truly believe in the power of our imagination and that what we believe in our lives is an actual...

Maria in Vancouver3 months ago

DECORATE YOUR HOME 101

By Matte Laurel-Zalko Our home interiors are an insight into our brains and our hearts. It is our own collaboration...

Maria in Vancouver4 months ago

Guide to Planning a Wedding in 2 Months

By Matte Laurel-Zalko Are you recently engaged and find yourself in a bit of a pickle because you and your...

Maria in Vancouver4 months ago

Staying Cool and Stylish this Summer

By Matte Laurel-Zalko I couldn’t agree more when the great late Ella Fitzgerald sang “Summertime and the livin’ is easy.”...

Maria in Vancouver5 months ago

Ageing Gratefully and Joyfully

My 56th trip around the sun is just around the corner! Whew. Wow. Admittedly, I used to be afraid of...

Maria in Vancouver6 months ago

My Love Affair With Pearls

On March 18, 2023, my article, The Power of Pearls was published. In that article, I wrote about the history...

Maria in Vancouver6 months ago

7 Creative Ways to Propose!

Sometime in April 2022, my significant other gave me a heads up: he will be proposing to me on May...