Build Build Build to Help Push GDP Growth to 7%
The government’s Build Build Build program is going to be the main driver of the Philippines’ fast economic growth according to Standard Chartered Bank.
Stanchart economist for Asia Chidu Narayanan said in the Global Focus Q3 2018 Report that the massive infrastructure program places upside risks on the country’s GDP growth forecast, which is 6.7 percent for this year.
Narayanan said “fuller implementation of planned projects could push growth close to seven percent.”
“Infrastructure activity was much higher in Q1-2018 than in the same period last year, but slowed mildly from Q4-2017; we expect the pace to pick up. Operational issues at the district level and bureaucratic red tape persist,” he added.
The economist also mentioned that the infrastructure spending is forecasted to go from an average of 2.7 percent from 2011 to 2015 to 6.3 percent of GDP in 2018 by the Department of Budget and Management (DBM).
In the first quarter of the year, the data showed infrastructure spending went up to 4 percent of GDP.
Infrastructure spending is guaranteed to increase until 2022 with the Duterte administration committed to spend at least P8.4 trillion.
The Philippines has experienced 77 quarters of uninterrupted economic growth with this year’s GDP growth rising to 6.8 in the first quarter from the 6.5 percent in the fourth quarter of last year.
A GDP growth between 7-8 percent this year from 6.7 percent last year is the forecast of economic managers through the Cabinet-level Development Budget Coordination Committee (DBCC).
via Philippine Star / Lawrence Agcaoili
