Philippine economy has strong growth of up to 7.5% in 2018
The PH economy advancing in 2018 is not a surprising forecast with institutions believing the country’s GDP to increase at a much quicker pace of up to 7.5 percent. This was after it increased by 6.9 percent in the last quarter of 2017 which means that the Philippines is on track based on the government’s target.
Rebound in exports, capital spending, rising government infrastructure expenditure, tourism, OFW remittances and BPO revenues are expected to sustain this growth.
Economist Victor Abola of University of Asia and the Pacific, the question isn’t if the economy will increase further but how long the Philippines can sustain it.
Abola said in a briefing, “In terms of geopolitical risks, we know what they are [and] we can’t say what’s going to happen there. Middle East and North Korea are the most critical ones to watch out for. In local horizon, we also see some [issues] including the Sereno impeachment, which may not happen anyway but it could be a political risk”.
Abola also took note of the fact that isn’t performing well in the last months. However, this will not cause any problem or major hit for the Philippine economy.
Moreover, inflation is expected to go up to 3.5-4 percent due to the TRAIN (Tax Reform for Acceleration and Inclusion) Law. However, in entirety, the government’s build, build, build program is expected to push economic expansion further.
“We expect the growth of the Philippine economy to accelerate this year. All engines of growth are up and running at a faster pace. The country’s economy will remain as the best performing in ASEAN, we are experiencing a demographic sweet spot that will continue to push consumption expenditure, there’s a revival in the manufacturing, and the country’s external position is strong,” According to FMIC president Rabboni Francis Arjonillo
Japan is the country’s leading export destination followed by the US, Hong Kong, and China.
