HIGHER infrastructure spending by the government and its efforts to help industries grow will allow the manufacturing sector to flourish, according to the National Economic and Development Authority (Neda).
In a statement, Socioeconomic Planning Secretary and Neda Director General Ernesto M. Pernia said higher infrastructure spending will improve producer’s access to local and international markets.
“With the Duterte administration’s commitment to fast-track implementation of infrastructure projects and programs, construction-related manufactures will be a major contributor to the growth of the sector,” Pernia said.
The Neda chief said government efforts must be geared toward improving the business climate. He said this can be done via the industrial strategy of of the Department of Trade and Industry.
Pernia said this strategy has the potential to generate more employment and encourage entrepreneurship nationwide. This will also help boost the country’s competitiveness in the global marketplace by creating new products and reaching new markets.
“To raise the local industries’ competitiveness in the increasingly integrated global economy, we need to increase both public and private investments in research and development. This will surely help in the exploration and development of new products, processes and markets,” Pernia said.
Last Friday the Philippine Statistics Authority (PSA) said the volume of factory output rose by 8.4 percent in October 2016, compared with a minimal increase of 1.5 percent during the same month of last year.
The value of manufacturing output, meanwhile, also expanded by 4.3 percent, a turnaround from the 6.2-percent decline in the same period last year.
For consumer goods, the food subsector recorded double-digit growth in October, with 14.3-percent and 16.8-percent growth rates in volume and value of production, respectively. These are reversals from the -14.7-percent and -14.9- percent contraction last year.
For intermediate goods, the petroleum products subsector continued to strongly recover with growth rates of 37 percent and 29 percent in volume and value production, also sharp reversals from the -21.7 percent and -35.1 percent recorded in October 2015.
For capital goods, transport equipment subsector also posted 19.4-percent and 17.7-percent growth rates in volume and value of production, which are improvements from last year’s 6.3 percent and 7.5-percent growth rates.
Nonelectrical machinery subsector also grew by 24.4 percent and 8.8 percent in volume and value of production, a turnaround from last year’s -2.6 percent and -1.4 percent.