Barclays keeps bullish outlook for PH even with rapid inflation

CLARK, Pampanga – An economist of Barclays remains optimistic about an above six percent expansion for the Philippine economy in 2018 amid risks from elevated inflation.

In a briefing at the sidelines of the site visit by economists, bank analysts and portfolio strategists at the New Clark City, Rahul Bajoria, director of t he research unit of investment bank Barclays said his expectations on Philippines’ domestic output “did not f undamentally change” despite the risks that have cropped up.

“We have been positive about the growth outlook of the Philippines for quite some time. Still forecasting closer to 6.5 percent this year. Probably increasing next year as the construction momentum picks up,” he said.

Increased infrastructure spending is the priority of the current administration under its “Build, Build, Build” program. Under this program, the government plans to invest at least P8 trillion to build necessary infrastructure around the country until 2022.

Authorities said putting in place needed infrastructure would ensure inclusive growth in the domestic economy.

However, growth is being tempered by the rise of inflation rate due to supply- side factors and management issues that have resulted in the lack of supply of rise, fish, meat and vegetables.

Food inflation, for one, has been pushing headline numbers, which as of end- August averaged at 4.8 percent, higher than the government’s two to four percent target band until 2020. Volatility of the l ocal situation,” he said.

BAJORIA currency is another concern, Inflation hit 6.4 percent last Bajoria said. “But I think the August and monetary officials central bank, the governor maintain their forecast of a yesterday, deputy governor peak in the third quarter this Diwa ( Guinigundo) made it year. pretty clear that the central Bajoria said inflation is bank is quite on top of the projected to peak in the third

MANILA – The government more passengers. eyes the removal from the The program is targeted to country’s roads of 170,000 go in full swing by 2020 with the jeepneys by the year 2020, an government extending P80,000 official of the Department of as subsidy to help operators and Transportation said on. drivers fund their purchase of

At the Malacañang, assistant new units, priced between P1.6 secretary Mark De Leon said million and P1.8 million. old jeepneys – those 15 years “P80,000 and older – will be bought by gobyerno, subsidy,

Binigyan kayo ng state-accredited scrap firms for

ng tapos P20,000 to P30,000.

papatakbuhin mo pa rin ‘yung Under the Public Utility unit

lumang unit? Binigyan ka na Vehicle Modernization [and yet] you’re running the old

nga ng bagong ng gobyerno, Program, old jeepneys will unit. be replaced by environment kalsada,” De Leon

Kailangan talaga natin friendly and fuel-efficient units, told reporters in Malacañang.

tanggalin sa those with an exit door on the De Leon added jeepney right side of the vehicle and a operators and drivers can form bigger body to accommodate cooperatives to ensure financial quarter this year, if it has not peaked yet last August, and to go back to within target levels starting in the second quarter of 2019.

“So a little bit of more monetary policy tightening from hereon, i think, will slow down the growth (of inflation) materially in our view,” he said, as he projects another 50 basis points increase in the Bangko Sentral ng Pilipinas’ ( BSP) key rates during the meeting of the central bank’s policy- making Monetary Board (MB) on Sept. 27.

The economist eyes inflation to average at 5.1 percent this year and 3.5 percent next year. He said changes on these figures depend on the rice tariffication measure that is currently being discussed in Congress and which has been certified

viability of the operations after some transport groups said the modernization program will just bury them in debt.

“registered cooperative Kapag kayo ay i sang

mas financing. madali kayong makakuha

risk ng Iyong bangko nababaan iyong noong

risk na bangko na magpautang sa

since inyo. Kasi iyong hindi individual bumaba,” he kayo makabayad ulit said.

kayo “I t [ a l s o ] r e d u c e s c o mpe t i t i o n . competition

I y o n g that boils down to

na iyon na sinasabi inefficiency. natin,

Nagkakarerahan