The Philippines’ gross domestic product (GDP) could grow up to seven percent this quarter and six percent in 2017. Outgoing Budget Secretary Florencio Abad as well as experts from Sun Life of Canada Philippines, Inc. and ING Bank have similar opinions on their forecasts for the country’s GDP growth.
Abad expects better performance in terms of the country’s economic growth in the second quarter of 2016. He thinks it may even hit at least seven percent this quarter due to higher spending in the government, boosted by election-related disbursements.
"I think we are turning over to the next administration an economy that is in great shape," The Philippine Star reported Abad as saying on Wednesday.
"They can actually concentrate on how to build on that, making it more robust and growing the economy further," he added.
Michael Gerard D. Enriquez, chief investments officer of Sun Life of Canada Philippines, Inc., projected a six percent increase of the GDP in 2017 and 5.9 percent in 2018.
"We can safely say that in the next six years, because of stable consumption, I think there’s no question already that the Philippines can grow 5.5% to 6%...," Business World Online reported Enriquez as saying.
Enriquez added that it also depends on the government’s ways of bringing the GDP to the next level. He emphasized that infrastructure, investments and government spending can drive GDP growth, even more than six percent.
In a similar note, global financial giant ING Bank upped its forecast for the country’s GDP in 2016 and 2017. From the original forecast of 6.2 percent increase this year, ING raised it to 6.5 percent. The original forecast for 2017 was only 6 percent but it was also raised to 6.2 percent.
"We anticipate that higher consumers' incomes and purchasing power and higher government spending would keep growth at above 6% in 2017," Rappler reported ING Bank Manila senior economist Joey Cuyegkeng as saying on Tuesday.
"Improvement in agriculture output in 2017 would present some upside possibilities," Cuyegkeng added.