PH GDP at 6.8% in Q1 2018
THE national gross domestic product (GDP) has reached 6.8 percent as of the first quarter of 2018 – the 10th straight quarter that the Philippines reached a GDP of more than 6.5 percent.
In a speech delivered by National Economic and Development Director General Ernesto M. Pernia during the Philippine Economy Performance Press Conference last Thursday, May 10, at Ortigas Center, Pasig City, Pernia said this GDP is already very much close to the low-end 2018 growth target of 7 to 8 percent GDP.
“This performance demonstrates that we have firmly laid the groundwork for reforms in some of the sectors of the economy. On the demand side, the upbeat performance in public construction, government consumption, and capital formation indicates that our reform efforts are bearing fruit and infrastructure development is accelerating, as planned,” said Pernia.
However, he also cited that factors such as rising inflation, interest rates, and weaker consumer confidence are some of the challenges that the improving economy faces.
"In any case, the Philippines remains one of the best performing economies in the region, next only to Vietnam’s 7.4 percent growth, same as China, and higher than Indonesia’s 5.1 percent. This performance demonstrates that we have firmly laid the groundwork for reforms in some of the sectors of the economy," Pernia said.
Among the economic sectors of the country, yhe industry sector posted the highest growth at 7.9 percent.
"This was backed by the manufacturing and construction sub-sectors’ continuing to grow at higher rates of expansion. Again, this indicates that our Build! Build! Build! program is gaining ground," Pernia said.
He said the the services sector also grew by 7.0 percent but agriculture growth weakened to 1.5 percent, after bouncing back from El Nino last year.
"The fishing subsector further declined by 3.7 percent, its fourth consecutive quarter of decline," Pernia said.
For his part, Finance Secretary Carlos Dominguez III said an even more aggressive spending from hereon on the “Build, Build, Build” program and other poverty-reduction initiatives would let the Duterte Administration hit its target of a GDP (Gross Domestic Product) expansion of 7 percent
or better and a reduced poverty-incidence rate of 14 percent over the medium term.
“President Duterte’s commitment to attaining an investment-led and inclusive economy via a massive public spending strategy would usher in what the Asian Development Bank (ADB) has forecast to the ‘golden age’ of the Philippines’ economic growth,” said Dominguez.
Currently, there are already reported 75 big-ticket infrastructure projects amounting to US$170 billion.
"Our country’s growth implies that we have the potential to become an upper middle income country, perhaps even as early as next year," Pernia said.