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[av_heading heading=’‘Expect riveting growth in succeeding quarters’’ tag=’h3′ style=’blockquote modern-quote’ size=” subheading_active=’subheading_below’ subheading_size=’15’ padding=’10’ color=” custom_font=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” admin_preview_bg=”][/av_heading]
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AP
Filipino workers balance on a crane at the construction site of a commercial high-rise in Metro Manila.
MANILA – As the Philippine economy grew above market expectations in the third quarter of the year, Finance secretary Carlos Dominguez III said the succeeding quarters will have a better growth narrative as the Duterte administration further ramps up spending on infrastructure and human capital development.
“Expect a more riveting growth narrative in the fourth quarter and onwards as the Duterte administration shifts to higher gear its unparalleled investment and stimulus program on the strength of the government’s greater absorptive capacity and its resolve to advance its ‘Build, Build, Build’ infra program as the main driver of the economy,” Dominguez said in a statement on Thursday.
The Philippine Statistics Authority reported the gross domestic product grew by 6.9 percent in third quarter, higher than a market consensus of 6.6 percent.
The most recent figure compares with the upward-revised 6.7 percent in the second quarter and the downward-revised 7.0 percent in the third quarter of 2016.
“Notwithstanding the continued political noise and the terrorist activity in Marawi, which President Duterte had decisively addressed, the economy managed to perform well in the third quarter as the government posted a double-digit increase in public investments and pursued initiatives to further improve fiscal health and boost investor sentiment,” Dominguez said.
The Finance chief said the domestic economy is on track to meet the official full-year expansion target of 6.5-7.5 percent as the government accelerates spending on infrastructure and human capital formation, essential to achieving economic inclusion for all.
“Malacañang would be able to maintain fiscal discipline despite the escalated public spending on the Duterte watch owing to its commitment to provide a steady revenue stream for its P8.4-trillion ‘Build, Build, Build’ program through official development assistance packages and the Tax Reform for Acceleration and Inclusion Act bill, which the Congress is expected to pass this fourth quarter,” Dominguez said.
“There are such positive benchmarks as the record gross international reserves level, manageable debt service and formidable earnings from the OFW (overseas Filipino workers) and BPO (business process outsourcing) sectors that would likewise help the government sustain its economic stimulus plan into the medium-term,” he added.
Dominguez said the country is well on its way to attaining an investment-led economy in the face of a dramatic rise in foreign direct investment inflows to $1.203 billion as of August, up 70 percent higher from $708 million a year earlier.
He said the positive investor sentiment is illustrated by two major investments in recent months, namely the $1 billion investment by Japan Tobacco International (JTI) in acquiring the assets of cigarette maker Mighty Corp., and the $1.3-billion deal between the Philippines’ Energy Development Corp. (EDC) and a consortium of foreign investors backed by Macquarie Infrastructure and Real Assets (MIRA) and Arran Investment Pte. Ltd. – an affiliate of Singaporean sovereign wealth fund GIC. (GMA News)
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