There is optimism in the government that while the multiyear infrastructure buildup program has yet to prove its worth, there are many other growth drivers that could be counted on to push local output or the GDP as high as 7 percent in the third quarter.
National Economic and Development Authority (Neda) Director General and Socioeconomic Planning Secretary Ernesto M. Pernia told financial reporters that sustained push could come from such other sectors as agriculture, exports, investments and remittance.
“Well that’s the hope, [for third-quarter GDP to be faster than first quarter and second quarter],” Pernia told reporters at the sidelines of the Department of Trade and Industry’s Ease of Doing Business 2017 Report news conference on Thursday in Makati City.
The Philippines reported GDP averaging 6.4 percent in the first quarter, which was slower than the 6.8 percent posted in the same quarter last year, according to data from the Philippine Statistics Authority (PSA). The slowdown was attributed to the slow implementation of infrastructure projects in the country.
The second-quarter GDP this year averaged 6.5 percent, still slower compared to the 7 percent posted in the same quarter last year. This was also an increase from growth of just 6.4 percent in the first quarter and attributed to growth in the agriculture sector and a pickup in government spending.
“But there are many drivers likely to boost the growth [for the quarter],” he reiterated.
Among the drivers seen pushing GDP expansion to a higher plane include exports, investments, remittances from overseas Filipino workers and the growth in the agriculture sector.
“Well exports have been very good… agriculture also. I think investments are also looking good. And then overseas worker remittances have also been very strong. This will boost consumption spending,” he said.
Earlier, the Bangko Sentral ng Pilipinas reported a 7.8-percent rise in remittances by overseas Filipinos in August, with cash remittances hitting $2.5 billion during the month, higher compared to the $2.3 billion in
August 2016.
The agriculture sector, likewise, posted growth of 6.18 percent in the second quarter even as investments pledges fell by 55 percent in the April-to-June period, according to the PSA. Total foreign investments amounted to only P18.2 billion in the second quarter, from P40.4 billion in the same period last year.
In October the Neda chief also said high government spending and export growth were expected to boost GDP expansion in the third quarter.
In August export earnings rose by 9.3 percent to $5.51 billion, from $5.04 billion in the same month last year. Government spending in June increased by 22.6 percent to P270.7 billion, from the P220.8 billion in the same period in 2016.