MANILA — A top executive of Difference Group, a global provider of multipolar advisory services, sees the Philippines to sustain its economic growth this year and 2019.
Difference Group Chief Executive Officer and founder Dr. Dan Steinbock told Nordic businessmen during Nordic Chamber of Commerce of the Philippines general membership meeting Wednesday that the country could grow 6.7 percent, or higher, in 2018 and 2019.
“I think the objective 6.7 percent growth this year, and possibly even more or about the same next year, is doable,” Steinbock said.
He added that the economic expansion in the medium-term would be supported by the Duterte administration’s Build, Build, Build Program and Comprehensive Tax Reform Program (CTRP).
He said that the Build, Build, Build Program would accelerate investments in the country, particularly in infrastructure.
Steinbock also commended the Duterte administration for attracting more direct investments than portfolio investments, which was done by the past administration.
“Portfolio investments and direct investments, you need both. But direct investments create more jobs,” he said.
Moreover, Steinbock said that the tax reform program would push for economic rebalancing by expanding the number of middle income individuals with the lower personal income tax rate.
Steinbock added the administration’s regional balancing – sustaining relations with the United States while strengthening its ties with China – likewise benefits the country.
He likewise said the flow of remittances was expected to be robust this year and in the coming years as long as global economy was strong.
He added that overseas Filipinos would also continue to benefit with the weaker peso, which Steinbock forecast to reach the PHP54-to-a-dollar level.
On the other note, Steinbock cited some downside risks to the country’s economic expansion which include US Federal Reserve hiking rates, weaker growth in China, drastic deterioration of US-China relations leaving the Philippines in the middle, new protectionism that may hit remittances; escalation of domestic divisions and large-scale natural disasters. (PNA)
