ADB (Asian Development Bank) report says, The Philippine Economic growth is expecting to maintain its quick pace this year 2018 and 2019 as the government’s infrastructure program is rolled out.
Asian Development Outlook 2018, ADB projects Philippine GDP growth at 6.8% this year and 6.9% in 2019 was up from 6.7% in year 2017. The increase of domestic demand, remittances, and employment, adding to infrastructure spending, will drive growth . Asian Development Outlook and Asian Development Bank’s Flagship annual economic publication.
“with domestic demand, the government’s infrastructure investment will power the country’s expansion in the next few years, supported by good economic policy settings” said Kelly bird, Asian Development Bank Country Director for the Philippines. “ we expect this growth to continue and increase the employment numbers, add to the household incomes, and benefit more poor families all over the country.
Philippines remains to be one of the strongest fast growing economies in Southeast Asia in year 2017. The Domestic Investment was recorded at 9% growth last year, moderating from a quick 23.7% in 2016. The industrial machinery has a fixed growth, transportation equipment and public construction remains strong. The household consumption grew by 5.8% in the year 2017, from 7% in the year 2016, there are higher remittances and employment rate with the unemployment rate down by 1.3% points to 5.3% in January 2018 as 2.4 million jobs being added to the country. The public spending also rose by 7.3% from 8.4% last year 2016.
The inflation for consumer price reached 3.2% last year 2017 from 1.8% in 2016 because of strong economic growth, higher international fuel prices, and Php peso depreciation, but within the 2% to 4% target by the Bangko Sentral ng philipinas (BSP)- The Philippines central bank. The Philippines external debt further decline to 23.3% of GDP in year 2017, From 24.5% of GDP last 2016.
Moving on, Asian Development bank projects services will continue to push the GDP growth, together with the manufacturing and construction industries. The approval of tax reform for Acceleration and inclusion law in December 2017 will add to tax revenues and provide additional fiscal space for a more progressive public spending. The policy reforms are expected to yield adding 90 billion to 144 billion Php pesos *$1.73 billion to $2.76 billion) in tax revenue collection in 2018 and 2019.
With the Philippine economic growth is gaining momentum, inflation of the Philippines is projected to reach 4% in this year 2018 as global oil and food prices rise, and higher excise taxes on some commodities take effect in 2019, however, inflation is expected to decline to 3.9%
In the report notes there are also outside risk to the Philippines growth outlook from heightened volatility in international financial markets and unsure about global trade openness, however the Philippines strong external payments position would shield these effects.
According to the report managing the rollout of the government’s” build build build” project infrastructure program which is expected to raise the public infrastructure spending around 7.3% of GDP by 2022 from 4.5 in the year 2016. The report provide recommendation on ways to improve government capacity, also including strengthening coordination between government agencies and enhancing technical capacity of staff within these agencies, and making stronger partnerships between private sector, government sector and development partners.
Asia Development bank, based in metro manila, is committed to reducing poverty in Asia and the pacific by inclusive environmentally sustainable growth and regional integration and good economic growth. Established in 1966, it is owned by sixty seven members – forty eight from the region