Socioeconomic Planning Secretary Ernesto M. Pernia is optimistic on the sustained expansion of the Philippine economy in the third quarter of 2016 as government spending remain high.
“We hope its gonna be at least seven percent,” he told reporters at the sidelines of the 42nd Philippines Business Conference & Expo at Marriott Hotel in Pasay City Wednesday.
In the first half of the year, the economy grew, as measured by gross domestic product (GDP), by 6.9 percent, with the second quarter output alone rising by seven percent.
On both periods, the domestic economy’s output is among the highest in Asia, which shows resiliency amid the global economic uncertainties.
Domestic growth in the first half this year is already at the upper end of the government’s six to seven percent target for the year.
It remains driven by remittances, the business process outsourcing (BPO) sector and government spending.
Continued strong inflows from overseas Filipinos and employment gains from the BPO sector boost consumption as well as investment, with the latter also getting support from positive investor sentiments.
Also, government expenditure rose by 12 percent year-on-year as of last July to PHP1. 44 trillion as more funds are alloted for social services and infrastructure projects.
Under next year’s proposed national budget, infrastructure allocation amounts to about PHP860.7 billion, up 13.8 percent from this year’s budget.
The increase is due to the administration’s bid to put up more infrastructure such as roads and bridges that would have longer impact on domestic growth.
Source: Manila Bulletin