State spending will bolster Philippines economy – ING
Dutch financial giant ING Bank sees strong Philippine economic growth in the second half of the year on the back of government spending. ING Bank in Manila senior economist Nicholas Mapa said strong government spending will likely bolster growth through the second half of 2018, and offset a likely slowdown in household spending owing to accelerating inflation and higher borrowing costs. ING Bank forecasts 6% to 6.5% growth due to the government’s ability to still pump funds into the economy for infrastructure projects to offset the deceleration in household consumption. Specifically, Budget Secretary Benjamin Diokno attributed higher government spending to the various projects implemented by the Department of Public Works and Highways which include road widening, repair, construction, flood control and drainage improvement projects. Infrastructure and other capital outlays expenditures hit P505.6 billion in the first eight months of the year, an increase of 49.8 percent, or P168 billion, from a year ago.