PCCI optimistic growth will accelerate in 2019

The Philippine Chamber of Commerce and Industry (PCCI) 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 and it being an election year,” said Alegria “Bing” Limjoco, PCCI President.

Limjoco said they agreed with the projections of the Asian Development Bank (ADB) and the World Bank (WB) that see a growth rate of 6.7% and possibly 7% for 2019 despite rising global uncertainty.

“Indeed, we continue to be recognized as one of the more resilient economies in Asia,” said Limjoco.

The leader of the country’s largest business organization cited 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 will help drive this growth further.

In particular, she noted the public construction growing by 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’ (BBB),” Limjoco said.

She also noted of the surge in foreign direct investments (FDIs). “While figures for 2017 showed we reached a historic high of $10 billion, there are indications 2018 will exceed this record. Data as of June showed we have surpassed 2017 record of the same period by 9.2%, reaching $831 million from the $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.

In addition, she cited growth in tourism, which now accounts for 12% of the GDP. Similar with the growth in FDI, tourist arrivals in 2018 is also seen to surpass the 2017 record of 6.6. million. From January to June alone, we have hit 3.7 million visitors. We are on target to hit 7.4 million at year’s end.