Phils economy could grow as much as 8% this year – Metrobank

15 January 2017, Chrisee Dela Paz, Rappler.com

This is seen to be driven by higher capital investments as the Duterte administration continues to ramp up infrastructure spending.

The Philippine economy is projected to grow as much as 8% in 2017 and beyond despite some global and local risks, thanks to the country’s sound economic fundamentals, said the investment banking arm of the Metrobank group.

The country’s gross domestic product (GDP) growing by 7% to 8% this year and beyond “will be doable with low inflation,” University of Asia and the Pacific (UA&P) economist Victor Abola said in a media briefing in Makati City on Thursday, January 5.

Inflation peaked at 2.6% in December, its fastest during the year, leading full-year inflation to settle below the government’s target of between 2% and 4%.

First Metro Investment Corporation (FMIC), meanwhile, expects the Philippine economy to be stronger in 2017 than in the previous year, growing by 7% to 7.5%.

FMIC said this is driven by higher capital investments as the administration of President Rodrigo Duterte continues to ramp up infrastructure spending coupled with sound foreign direct investments (FDIs), strong consumer expenditure, stable remittances from overseas Filipino workers (OFWs), and the sturdy business process outsourcing (BPO) sector.

FMIC said inflation is seen to rise moderately at 2.8% to 3.2%, which would be attributed to the rebound of oil prices, strong domestic demand, and a weaker peso.

To weather global risks

“The Philippine economy will continue to be robust and outperform its Association of Southeast Asian Nations (ASEAN) peers in 2017,” First Metro president Rabboni Francis Arjonillo said.

“There will also be a lot of internal and external changes and threats that will impact the country’s economy but we are optimistic that given our sound economic fundamentals and compelling investment story, the country’s economy will remain strong,” Arjonillo added.

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