Philippines: Economy likely grew 7% in Quarter 1 – Pernia
MANILA, Philippines – The Philippine economy likely grew seven percent in the first quarter of the year, the middle point of the target range for 2017, Socioeconomic Planning Secretary Ernesto Pernia said.
“There are signs that for the first quarter, we’re going to hit close to the mid-range of this growth target, around seven percent,” he said during the Dutertenomics Forum in Pasay City yesterday.
The government expects the economy to grow between 6.5 percent to 7.5 percent this year and seven to eight percent from 2018 to 2022.
On the demand side, strong household consumption and government spending are expected to drive the economy.
“Consumption and government spending will continue to be a major factor,” he said.
On the supply side, Pernia noted the agriculture sector is expected to perform better this year and the construction industry is expected to become a major driver of growth.
The expected influx of tourists, particularly Chinese, is also expected to give the economy a boost.
Pernia, however, flagged several internal and external risks to the domestic economy. External risks include uncertain policy shifts in the US and slowdown in emerging economies such as China.
Internal risks include weather disturbances and possible delays in the implementation of public infrastructure.
He also identified among domestic risks “policy inconsistencies in several areas” as well as the environment department’s decision to close several mines.