R3.76-trillion

PH growth forecast at 6.5% – ADB; budget OK – House

T. HE Asian Development Bank (ADB) has kept its economic growth forecast for the Philippines this year at 6.5 percent

Country’s domestic demand robust, public investments in infrastructure and social services higher, it said.

*** The House of Representatives has approved the proposed 13.76-trillion budget for 2018.

223 congresssmen said yes in the exercise of power of the purse.

*** The ADB, citing the country’s strengthening economic growth, said it is projecting PH Gross Domestic Product (GDP) to grow by 6.5 percent this year.

Its within the Duterte administration’s 6.5 percent to 7.5 percent target range.

*** The ADB also maintained at 6.7 percent its growth forecast for next year, to be driven by increased public investment and household consumption. Forecast favorable. Just don’t make trouble.

*** “The effort by the Philippine government to improve public project implementation is bearing fruit, as public investment programs help drive continued economic expansion,” Richard Bolt, ADB country director for the Philippines, said.

All’s well. Fromplanning to implementation to fruition.

*** “A strong focus on infrastructure investment and implementation of tax reform will see the country continue its growth momentum through 2018,” Bolt added. Two-year growth in forecast.

*** The ADB pointed out that the economy expanded by 6.4 percent in the first half of the year, a moderation from the election-driven 7.0 percent pace a year earlier. Early showing merit smiling.

*** “Part of the positive outlook on the Philippine economy is the improving consumer and business sentiment; it has consistently improved. Businesses likewise cited buoyant domestic demand, the roll out of infrastructure projects, among others,” Bolt said.

Bolt of lightning and much needed rain coming.

*** ADB added that at end-June, fixed investment grew by 12.1 percent, reaching its highest share as a percentage of GDP in over a decade at 25.8 percent.

Public and private investment, and household consumption supported by remittances from overseas Filipinos, were the key drivers of growth, the bank said.

*** Services, the largest sector of the economy, increased by 6.4 percent at end-June, with business process outsourcing, trade, tourism, and finance leading the way, said ADB.

More service firms means more growth.

*** ADB explained manufacturing growth quickened to 7.7 percent on strong domestic consumption and an improvement in exports.

More growth from manufacturing, too. And let economy really grow!