Money Matters

PHL entering “golden age for economic growth”, says ADB

BIG THINGS LIE AHEAD. The Philippine economic growth is expected to generate a 6.8 percent increase this year and 6.9 percent in 2019, as the country makes its way to the “golden age of economic growth”, according to the Asian Development Bank (ADB).

At the launch of its Asian Development Outlook (ADO) 2018, ADB said that high domestic demand, higher employment, rising remittances, and increased public spending on infrastructure will be the main drivers of the country’s economic growth.

Moreover, the bank cited that increased importation of capital goods and strong bank credit growth indicate stronger private investment in the country. ADB also said that business optimism remains upbeat as shown in the central bank’s business outlook survey and an improved investment grade of BBB in December from Fitch Ratings.

In 2017, the Philippines was one of the fastest-growing economies in Southeast Asia, and it is expected to sustain its performance this year, according to ADB country director for the Philippines Kelly Bird.

“The Philippines is in its golden age for economic growth. It has been growing at this pace for several years and has grown in a sound macroeconomic environment at moderate inflation. This growth is expected to be sustained throughout 2018 to 2019,”  Bird said.

The major challenge in the country’s growth, however, is the proper management of project rollouts under the government’s ambitious Build Build Build program. The report by ADB said that there is a need to strengthen coordination between government agencies, enhance technical capacity of staff, and improve government capacity.

via The Philippine Star / Czeriza Valencia

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