MANILA — BMI Research continues to see better than six percent annual growth for the Philippine economy on the back of positive demographics and the government’s massive infrastructure program.
In a study, the subsidiary of Fitch Group forecasts a 6.3 percent growth for the domestic economy this 2018 and 6.2 percent in 2019.
Although these figures are lower than the 6.7 percent that the economy registered in 2017 and the seven to eight percent growth target of the government for 2018-22, the study said these anticipated growth rates remain “impressive”.
It attributed these forecasts to “weakening business environment and a gradual reversion of growth back to its longer-term potential.”
“Nevertheless, we emphasize that the above- six percent growth figure is still impressive from both a regional and historical perspective, and this will be supported by positive demographic trends, a strong public infrastructure drive, and deepening economic cooperation with China,” it said.
“The robust macroeconomic backdrop should continue to bode well for household income growth, risk appetite, loan demand, and corporate profitability in general,” it added.
The country enjoys demographic sweet spot, with majority of the population reaching working age.
Thus, the government is investing in the youth to equip them with the needed skills once they enter the workforce.
Also, the Duterte administration has put in place a massive infrastructure program called “Build, Build, Build”, wherein which at least Php8 trillion will be spent until the end of the current government in mid-2022 to construct roads, bridges and other necessary infrastructure not only in major cities but most especially in far-flung areas such as Mindanao to ensure that growth would really be inclusive. (PNA)
