Fitch sees PH growth avg at 6.6% in 5 yrs

DEBT watcher Fitch Ratings said Philippine economic growth in the next five years could average above percent as the country continued to hold strong external position and macroeconomic fundamentals.

According to the Asia Pacific Sovereign Overview 3Q17 released on Wednesday, Fitch said the Philippines gross domestic product (GDP) will likely grow by 6.6 percent on average in the

The Philippines was able to grow strong without emerging “imbalances and maintenance of external buffers that are resilient to potential negative external de- velopments.”

In 2017 alone, Fitch expects the economy to sustain a strong growth momentum of 6.8 percent and 6.7 percent in 2018.

It pointed out the country’s strong external position with current account surpluses, high levels of international reserves, and low and declining external debt.

However, it expects the current account—a main component of the balance of payments—to post GDP in 2017 and 0.7 percent in 2018, based on rising capital goods imports as the government ramps up infrastructure spending.

The Duterte administration tar- gets to spend P847 billion on infrastructure development this year covering projects in all regions, including small-, medium- and large- scale ventures to meet an infrastructure spending- to- GDP ratio of 5.3 percent.

“The Philippines remains a net external creditor and, at 13.3 percent of GDP, this is stronger than the net debtor position of the ‘BBB’ median peers, supportwatchdog said.

In March, Fitch affirmed the Philippines’ “BBB-” investment grade rating and positive outlook, but warned it will be watching the impact of the government’s anti-illegal drugs program on the overall economy.

It offered neither an upgrade nor warned of a downgrade, saying country’s strong growth momentum, robust net external position, and low manageable debt levels.

At the same time, it also cited the factors at the other end of the spectrum: relatively weak governance standards, a narrow government revenue base, and below BBB- median levels of per capita income and human development. its continued strong and consistent growth performance, a robust net

SANTA ANA, Cagayan: The Cagayan Economic Zone Authority’s (CEZA) new administration on seaports, airports and railways as the development priority projects to make the Cagayan Special Economic Zone and Freeport ( CSEZFP) a modern economic center in Northern Luzon.

Raul Lambino, who took over the CEZA leadership on Monday as the new administrator and that Port Irene in Barangay (village) Casambalangan will be repaired.

Lambino said dredging of its heavily silted seabed and the construction of additional wharves to expand its capacity is on top of his wish list as well as the modernization of the North Cagayan International Airport in Lal-lo town.

“These two are extremely important to spur development of the [Cagayan] ecozone,” Lambino said.

He added that a multi-billion development will include a railway alignment from Tuguegarao City to the towns of Lal-lo and Santa Ana for both commuter and cargo services linking up with the rest of Luzon

“We envision the Cagayan Special Economic Zone and Freeport as a vibrant growth center that is efficient, clean and free of cor administrator of the Cagayan ecozone established on the basis of Republic Act 7922.

He said he will tap domestic investors while wooing foreign capitalists from Japan, China, South Korea, Taiwan and Russia for light industry manufacturing and tourism in the Cagayan Freeport.

“I wish to add more local and foreign investors to participate in the development process with due consideration to the existing partners that we have,” Lambino said during the turnover ceremony on July 24 in Pasig City.

Lambino succeeded former Sec. Jose Mari Ponce who was at the helm of the government-owned and -controlled corporation for 12 years.

The new chief is a close ally of President Rodrigo Duterte and has served as the spokesman and lawyer of former president, now Pampanga Rep. Gloria MacapagalArroyo.

Ponce, in his farewell speech during the turnover, thanked the men and women of the organiza that contributed to the overall success of CEZA.

In 2005, Ponce took over CEZA when the company was reportedly on the verge of dying and managed to stimulate the company’s growth during his 12-year administration.

“The corporation was in moribund state, with negative income, heavy government subsidy and dilapidated infrastructure, if any. We were able to transform this once losing entity that was ready to close into a performing, wellregarded government entity in Region 2 and a highly attractive investment area,” Ponce said.

Today, Ponce said CEZA generates hundreds of millions in revenues and has been able to remit over P1.42 billion worth of government revenue through tax remittance, dividends share, and other direct and indirect government transactions.

The remittances include P816.185 million in corporate income tax collected by the Bureau of Internal Revenue and P611.671 million in dividends that went to the National Treasury.

CEZA has 217 registered locators, three port users and three accredited service providers as of June 30 this year.

Among the greatest accomplishments for CEZA during Ponce’s stint include freeing CEZA from government subsidy, giving a steady growth of capital investments, employment and promoting local economic activities in the area.

The CNIA which is envisioned as an aerotropolis is considered - ture facilities that have been established by CEZA under Ponce’s administration.

“Aviation services like a park and hangar hub, aircraft maintenance schools and other support system for aviation needs, airport crew and tourism can be offered in the area,” Ponce said.

“Secretary Ponce has done a good job with CEZA and I hope to continue the positive developments he started and do more,” Lambino said.

“I am positive that we can live up to the primary mandate of CEZA and make it the heart of economic activities in Northern Luzon, particularly Regions 1, 2 and the Cordilleras,” he said.

“We intend to expand the current CEZA 2017- 2022 Medium Term Development Plan by infusing bigger infrastructure projects and investments in different areas through an extensive investment and marketing campaign.” Lambino added.

He said the expansion is in line with President Duterte’s 10-Point Socio- Economic Agenda that highlights the acceleration of infrastructure and the development of industries that will yield robust growth across the archipelago, create jobs and uplift the lives of Filipinos.