The Asian Development Bank (ADB) said on Thursday that the Philippines could achieve a full-year growth of Gross Domestic Product (GDP) at 6.8 percent and 6.4 percent in 2017. ADB’s previous forecast was at 6.2 percent for 2016 and 6.1 percent in 2017.
Here are three fast facts on ADB raising the country’s GDP growth for 2016.
1. ADB said the revised projection was due to the positive GDP performance showed during the third quarter, which posted a 7.1 percent GDP growth.
ADB country economist Aekapol Chongvilaivan said the country had a better than expected export performance. He also added that the weakening of the peso supported it.
2. ADB said, however, that GDP growth in the fourth quarter could be lower.
“By the fourth quarter, we expect that growth will be slightly going down due to an uncertain global economy and the fact that capital investments,” Business World reported Chongvilaivan, as saying. He added that ADB expect a slight decline in capital stock and a stable trade deficit.
3. ADB also raised its GDP forecast for 2017 to 6.4 percent. This is already the third upward revision of ADB for this year and next year.
ADB first released its Asian Development Outlook 2016 report in April. It changed its forecast for the GDP growth coming from the original 6 percent and 6.1 percent projections for 2016 and 2017.
“With overall modest growth in ASEAN, the Philippines is a bright spot in the dark,” Chongvilaivan said. He added that the country must boost investments in infrastructure to sustain growth.
Budget Secretary Benjamin Diokno confirmed that infrastructure spending would be high during the term of President Duterte. “From 2017 to 2022, infrastructure spending will be as much as P9 trillion,” The Philippine Star reported Diokno, as saying.
What do you think of ADB raising its GDP forecast for the Philippines? Let us know in the comments section below.