The Philippine Chamber of Commerce and Industry expects the economy to surge in 2019.
“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,” PCCI president Alegria Limjoco said.
“We agree with the projections of the Asian Development Bank and the World Bank 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,” she added.
The PCCI cited that the acceleration of infrastructure projects and related spending preparatory to the country’s hosting of Southeast Asian Games in November 2019 and the holding of national elections were among the drivers for growth.
“What excites us most is the growth of public construction that grew 22.1 percent in the first half of 2018, up from the 9.3 percent growth in the first half of 2017. We expect a more robust government spending for priority programs and projects, particularly Build Build Build,” Limjoco said.
Another growth driver is Another is the surge in foreign direct investments. While figures for 2017 showed a historic high of $10 billion, there were indications 2018 would exceed this record, the PCCI said.
Data as of June showed FDI surpassed the 2017 record of the same period by 9.2 percent, increasing to $831 million from $761 million in June last year.
Infrastructure build-up has been credited for the strong investors’ interest in the country. Sustaining these projects will help encourage more FDIs,” Limjoco said.
Similar with the growth in FDI, tourist arrivals in 2018 were also expected to surpass the 2017 record of 6.6. million. Tourist arrivals in the first six months of 2018 hit 3.7 million and may reach 7.4 million by the end of the year.
Tourism now accounts for 12 percent of the gross domestic product.
The PCCI noted the improvement in the overall quantity and quality of jobs and the significant drop in underemployment with the proportion of wage and salary jobs now accounting for nearly two-thirds of all employed workers, as reported by the October Labor Force Survey.