th images menu user export search eye clock list list2 arrow-left untitled twitter facebook googleplus instagram cross photos entrep-logo-svg

PH Banks on Infra Projects, Exports to Boost GDP Growth Later This Year

Despite slowdown, government planners still see the economy expanding by 6.5-7.5% this year
By Elyssa Christine Lopez |

 

 

The Philippines’ socioeconomic planning secretary, Ernesto Pernia, remains optimistic that the economy can grow by 6.5-7.5 percent this year despite the slowdown in the first three months of 2017.

 

The country's gross domestic product (GDP) growth slowed to 6.4 percent in the first quarter of the year, well below analysts’ average forecasts of around 6.8 to 6.9 percent.

 

 

Related story: PH Back as ASEAN's Fastest-Growing Economy 1Q 2017

 

 

Pernia said the lower-than-expected GDP growth was largely due to easing of government and consumer spending in the first three months of the year compared to levels a year ago when the country was preparing for the May 2016 presidential elections. Both the government and the candidates were increasing spending ahead of the polls in the same period last year.

 

“The changing of the guards of the government and reorientation of programs really takes time to settle, and this slowed government spending for the quarter,” Pernia said during the press briefing.

 

But this will not likely be the case for long. Pernia is optimistic that the economy will pick up in later months and hit the government target of 6.5 to 7.5 percent GDP growth for 2017. He added the government is launching a number of infrastructure projects later this year. It wants to increase infrastructure spending to Php8.4 trillion from 2017 to 2022.

 

 

Related: (Infographic) Duterte Planners Seek to Usher in ‘Golden Age of Infrastructure’

 

 

“With the steady unfolding of the Build Build Build program in the coming months, we expect construction activities and public spending to pick up sharply, consistent with the government’s aim to spend 5.3 percent of GDP this year for infrastructure and up to 7.4 percent by 2022,” Pernia added.

 

The ambitious plan aims to decongest Metro Manila and to boost various trading hubs across the country with the construction of new airports and railways.

 

On top of the government’s spending, the economy is also likely to benefit on the country’s trading activities as exports of goods and services grow.

 

“Exports of goods grew by 22.3 percent, the fastest since the third quarter of 2010, and exports of services grew steadily by 14.3 percent in the first quarter of the year,” Pernia said.

 

 

Related: Will Duterte’s 2nd Beijing Trip Lead to a Surge in Banana Exports to China?

 

 

*****

 

 

Elyssa Christine Lopez is a staff writer of Entrepreneur PH. Follow her on Twitter @elyssalopz

Latest Articles

Productivity Hack: Free Up Space on Your Mobile with Files Go

An app that frees up space, finds files faster, and easily shares them

byNicai de Guzman | December 14, 2017 10:00:00

Which PH Cities and Towns Have the Most and Least Bank Deposits?

If you have Php10 million in the bank, you have more deposits than at least 10 entire towns

byPauline Macaraeg | December 14, 2017 09:00:00

The Holy Trinity of Business Growth: People, Process and Metrics

How do you keep your company profitable as it scales above 50 employees?

byDoug and Polly White | December 14, 2017 08:00:00

3 Relationships That Will Build the Tribe Every Entrepreneur Deserves

Life is a team sport, and we cannot succeed alone

byKim Perell | December 14, 2017 06:00:00

Science Says You Can Do This Simple Action to Boost Your Memory

You have to listen to your own voice

byNina Zipkin | December 14, 2017 02:00:00

This 6-Year-Old Kid Reportedly Earned US$11 Million on YouTube

His most popular videos are the ones with an "egg surprise." Watch them here!

byKitty Elicay for SmartParenting.com.ph | December 14, 2017 00:00:00

Users of Online Marketplace Carousell Earn Php20K a Month Selling Mostly Secondhand Stuff

Launched in the Philippines in October 2016, the SG startup has helped sell over one million items

byElyssa Christine Lopez | December 13, 2017 12:00:00

Meet the Fruitcake Queen Who Has Been Making The Christmas Staple for Over 40 Years

Despite rising demand, Ju.D Lao refuses to open a shop and just wants to keep it a home-based...

byPaul John Caña | December 13, 2017 09:00:00

Hard Work? It's Not All It's Cracked up to Be. It May Even Be Irrelevant. Here's Why

Netflix let go of many of its hardest-working employees in favor of those who most greatly impacted...

byJayson Demers | December 13, 2017 08:00:00

Here's Why Introverted Employees Are More Likely to Leave Companies

A Myers-Briggs Type Indicator test could determine the mix of introverts and extroverts at your...

byHeather R. Huhman | December 13, 2017 06:00:00

Steve Jobs Shares the Secrets to Successful Team Leadership in This Throwback Video

The Apple co-founder reveals what he really thinks about professional managers

byNina Zipkin | December 13, 2017 02:00:00

This Tiny Detail Might Just Double The Value Of Your Home

Properties within a block or two of this famous cafe is shaking up the real estate game

byReal Living Team for RealLiving.com.ph | December 13, 2017 00:00:00