The Philippines is seen to sustain its robust economic growth in the coming years, with gross domestic product (GDP) expansion likely to exceed 6.0 percent annually.
IHS Markit Chief Economist for Asia Pacific Rajiv Biswas said the country’s robust economic growth in the coming years would be supported by buoyant private consumption and upbeat government spending as projects under the administration’s Build, Build, Build infrastructure program would be rolled out.
On Thursday, Socioeconomic Planning Secretary Ernesto Pernia announced that Philippines’ GDP rose 6.9 percent in the third quarter of 2017, which is higher than the 6.7 percent growth in second quarter of the year and slightly eased from the 7.1 percent growth rate in Q3 2016.
The country’s Q3 2017 growth was above market expectations.
“The strong Q3 GDP outturn reflected the strength of domestic demand, with private consumption having been underpinned by rapid growth in household incomes, sustained strong inflows of foreign worker remittances, and rapid growth in consumer credit,” Biswas noted.
“Rapid growth in construction spending is also expected to support GDP growth momentum, due to continued buoyant growth in the residential construction sector while the government’s Build, Build, Build strategy is ramping up public sector spending on infrastructure,” he added.
The economist said the strong Q3 2017 growth means the country can possibly hit a sustained GDP growth of over 6.0 percent annually for six consecutive years.
For 2018, IHS Markit’s GDP growth outlook is expected at 6.3 percent while growing at above 6.0 percent until 2020.