Upbeat
No. 23.12.14 No. 2124 10.30.2008
PHL economic growth seen to top 7% in 2015 The Philippine economy is seen to grow over 7% next year spurred by higher infrastructure spending, cheaper crude oil, lower inflation rates, and preparations Photo courtesy of Public-Private Partnership (PPP) Center for the 2016 elections, the Department of Trade and Industry (DTI) said. DTI Secretary Gregory L. Domingo said the lower global oil prices, resulting from the reduced demand from slowing economic growth in Europe and China, will help drive growth as the Philippines is an oil-importing country. The declining fuel costs can lead to lower inflation. “Construction growth next year could be in double digits because our budget for infrastructure continues to grow, especially with the PPP [public-private partnership] projects,” he said. Knowledge Management and Information Service Makati City, Philippines Tel.: (632) 895.3611 Fax: (632) 895.6487 publications@dti.gov.ph
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“We have a goal to increase infrastructure spending from 2.5% of GDP [gross domestic product] to 5% until 2016. Maybe next year, it could hit 3.5% or 4% of GDP already,” he added.
On the same note, National Economic and Development Authority (NEDA) Director-General Arsenio M. Balisacan cited more factors that will propel the country’s economy next year. “There are bright prospects to look forward to as the year ends. Our macroeconomic fundamentals remain strong,” Balisacan said. The country’s strong export performance, he said, has been sustained for the year, especially for high-value products. The Philippine export growth is expected to hit 10% this year. Balisacan said that since the second half of 2012, industry sector growth has outpaced that of the services sector, consistent with the government strategy to promote the country’s manufacturing industry. “The services sector continues to be robust, especially the IT-BPM [information technology-business process management] sector,” he said.
Photo courtesy of investvine.com
Balisacan also cited the growing household consumption which also indicates strong consumer confidence.