FMIC, UA&P expect PH growth to hit target

THE Philippine economy likely sustained its strong growth pace in the last three months of the year, an investment bank and a private university said in a joint report, pointing to infrastructure spending as the main driver.

“With the growth momentum back in [the] third quarter and a strong start in [the] fourth quarter, we think our early forecast of 6.5 percent to 7 percent GDP (gross domestic product) growth for 2017 will easily play out,” bank First Metro Investment Corp. (FMIC) and the University of Asia latest issue of The Market Call.

A 17.8-percent rise in government infrastructure and capital outlays for October and 28 percent growth in national expenditures during the same month set the stage for even faster fourth quarter economic growth, they said.

The Budget department has said that government resources were primarily used for priority public works, transport and communications projects, including completed deals under the Public Works department and consultancy and civil works for light railway projects under the Transportation department.

“Supporting this quickening pace, exports growth remained positive, while foreign investments continued to rebound as it soared by 70 percent in August,” the report noted.

Total export sales remain consistent with the current positive trend, it added, growing by 4.3 percent in September.

will be buoyed by strong demand from the United States, the European Union, China and India and thus continue contributing to Philippine growth.

“Recall that in third quarter, external demand provided an additional boost resulting in faster growth. In addition, the peso’s real depreciation of 7.2 percent in November from the 2016 average ( as measured by Bangko Sentral ng Pilipinas’ real effective

exchange rate) supports our view of future exports expansion,” the report said. slowed to 3.3 percent in November from 3.5 percent a month ago, which should provide more con-

“All these put an acceleration bias for the economy, following through a better- than- expected GDP growth in third quarter,” it added.

The economy grew by 6.9 per- cent in the July-September period. Results for the second quarter were also revised upwards and year-todate growth, at 6.7 percent, has kept the country on track to hit a 6.5-7.5 percent target.