Philippine economy to grow 7.5% this year

With the continued growth of the business process outsourcing industry and the inflow of money sent in from Filipinos working abroad, the Philippine economy could grow 7.5% this year, economists said. The economy grew by 6.9% in Q3 of 2017, which makes the country on track to hit 6.5% to 7.5% for the entire year of 2017. Unsurprisingly, private capital spending, rising government infrastructure expenditure, rebound in exports, stable overseas Filipino workers (OFWs) remittances and business process outsourcing (BPO) revenues and a tourism boom are seen to sustain this growth trajectory. Inflation, on the other hand, is expected to go up to 3.5% to 4% as a result of higher than expected oil prices and the impact of the tax reform law, which will take effect this year.