The robust growth of the in-dustry sector, as well as the disaster-related reconstruction and rehabilitation works, will increase the demand for steel products in the country, according to the National Economic and Development Au-thority (Neda).
Neda Director General for Programming Rolando G. Tungpalan said the growth of industries, such as shipbuilding, will contribute to the increase in demand for iron and steel products.
“With an improved and revitalized iron and steel sector, we are confident that we will be at par with neighboring countries and be able to keep up with the rising demands of our fast-growing economy,” Tungpalan said.
“The ongoing reconstruction and rehabilitation of disaster-affected areas and retrofitting works for disaster-resilient infrastructure are also expected to increase the demand for iron and steel in the coming years,” he added.
Tungpalan also said that with the Philippine economy continuing its high-growth path and the Asean integration taking place by the end of 2015, the government expects a surge in developments within and outside Metro Manila.
The Neda official said these are in addition to key infrastructure projects that are already on stream and in the pipeline.
He also emphasized that infrastructure development is a crucial determinant of the growth and competitiveness of the country. Tungpalan said it facilitates connectivity and mobility, strengthens resilience among people and communities, and reduces poverty through quality employment.
“Iron and steel are a major catalyst for national development. The growth of local iron and steel production will support and further stimulate future infrastructure development initiatives,” Tungpalan said.
In the first quarter of 2015, data released by the Philippine Statistics Authority (PSA) showed that while government construction spending declined 24.6 percent, private construction investments were on the rise.
Data showed that private construction posted a growth of 14.2 percent from a construction of 5.1 percent in the first quarter of 2014.
As a production sector, the construction industry posted a growth of only 4.5 percent
in the first quarter of 2015, on the back of slower public-construction spending.
The slower growth of construction was higher than the 1 percent posted in the first quarter of 2014, but slower than the 17.9-percent growth it posted in the fourth quarter.