The Philippine Economy in brief

Our economy has been on a strong footing, growing by an average of 6.4 percent in the last eight years, the strongest since the mid1970s. In 2017, real GDP grew by 6.7 percent, from the previous year’s 6.9 percent. Such performance was within our growth targets of 6-7 percent for 2016 and 6.5-7.5 percent for 2017.

For the first half of 2018, the economy grew at a respectable rate of 6.3 percent, slower than the 6.6 percent in the first half of the previous year. This is due to prudent and judicious policy decisions for the environment, made by the government for long-term, sustainable, and resilient development.

In comparison to the economic performance of our neighbors in Asia, the Philippines followed India (8.0%), Vietnam (7.1%) and China (6.8%), and was ahead of Indonesia (5.2%), Thailand (4.8%), Malaysia (4.9%), and Singapore (4.2%).

The economy is also undergoing structural transformation as growth is increasingly being driven by investments vis-à-vis consumption on the demand side, and by the industry sector – manufacturing, in particular – relative to the service sector on the supply side. In other words, the sources of economic growth have broadened and diversified.

To note, more than a third (35.5%) of actual foreign net equity investments in 2017, and almost half in the first five months of 2018 went to manufacturing, from only 13% in 2016.

Total net Foreign Direct Investments in 2016 was US$8.3 billion, rising to US$10 billion in 2017, and US$5.8 billion in the first half of 2018, growing by 42.4 percent.

To boost investment-led economic growth, some 4,490 infrastructure programs, activities, and projects on transportation, water resources, energy, information and communications technology (ICT), social and other public infrastructure, with total investment requirement of P7.74 trillion. These will be rolled out within the medium-term.

These infrastructure projects will be funded with the best possible funding sources, or an optimal mix of financing from public and private sources, besides official development assistance.

Ultimately, what we are trying to say here is that we in the government rigorously vet the viability of projects, and the government must work hand in hand with the private sector in implementing the ambitious Build, Build, Build Program.

Let me conclude by saying that we have not reached our growth potential yet. Our growth trajectory can only continue to rise.

We are committed to pursue the policy reforms spelled out in the Philippine Development Plan 2017-2022, and earnestly implement the needed programs and projects, keeping in mind our goal of a comfortable and secure life for Filipinos and residents in the country. -Ernesto M. Pernia Socioeconomic Planning Secretary Excerpt speech during the Philippine Economic Briefing on September 18, 2018