2019 GDP growth expected to hit 6.7%
Credit to Author: ANNA LEAH E. GONZALES| Date: Thu, 20 Dec 2018 17:36:15 +0000
State spending on infrastructure and related sectors, along with the upcoming elections, will help drive economic growth to 6.7 percent next year, the Philippine Chamber of Commerce and Industry (PCCI) said on Thursday.
“Our country continues to enjoy strong macroeconomic fundamentals, enabling us to weather external headwinds. Our economic outlook for 2019 is still strong backed by robust consumer spending and stronger government expenditures,” the business group said in a statement.
“We agree with the projections of the Asian Development Bank (ADB) and the World Bank (WB) that see a growth rate of 6.7 percent for 2019 despite rising global uncertainty. Indeed, we continue to be recognized as one of the more resilient economies in Asia,” it added.
The forecast falls below the government’s 7.0-8.0 target for next year.
The PCCI said it expected a more robust government spending for priority initiatives such as the “Build Build Build” program.
“We in PCCI believe that investment growth will eventually catch up as higher public capital outlays, including increased infrastructure spending will be undertaken more aggressively under BBB,” it said.
The government, it continued must make sure that investor interest in the country remains strong.
“To keep the momentum going, the government should address persistent challenges on doing business in the country,” said PCCI.
In particular, it said the government should immediately streamline and harmonize country’s business permit and licensing systems.
“It is ironic that four months after its enactment, the implementing rules and regulations of the Ease of Doing Business Act has yet to be finalized,” the PCCI pointed out.
Other recommended interventions include action on port congestion and settling the issue of contractualization.
Economic growth is currently running below target, averaging 6.3 percent as of end-September — below the downwardly revised 6.5-6.9 percent target for 2018.
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