Philippine economy could grow faster this year – Dominguez

MANILA, Philippines - The Philippine economy could grow faster than the official target for this year and would likely sustain that level under the Duterte administration, Finance Secretary Carlos Dominguez said.

“Our economy is expected to grow between 6.5 and 7.5 percent this year. This rate of growth (is) likely to continue into the medium term,” Dominguez said in a speech last week.

He delivered the speech before more than 500 guests at a business conference in Davao City. Copies of the speech were sent to the media over the weekend.

The Finance chief’s forecast is higher than the official six to seven-percent growth target this year, but matches the 2017 goals. Thee original target for the year was 6.8 to 7.8 percent.

Socioeconomic Planning Secretary Ernesto Pernia earlier said the Duterte government would like to be “conservative.” 

From 2018 to 2022, growth, as measured by gross domestic product (GDP), is targeted between seven and eight-percent. Second-quarter GDP figures will be reported on Thursday.

Dominguez said the local economy stands out amid external uncertainties and that increased infrastructure spending, to five percent of GDP from last year’s 3.3 percent, would boost that.

“This should immensely improve the logistics backbone of our economy as well as create jobs in the area that are less progressive,” he said.

“Gains in the efficiency of moving people and goods through the archipelago will bring down costs for consumers and enhance the productivity of our farmers, as well as the manufacturing of the country,” he said.

He also reiterated focus that would be given to the countryside, particularly in Mindanao, as an economic driver through the “dispersal’ of economic activity.

Airports and powerplants would be built and improved, Dominguez said, while roads would be expanded to support tourism and encourage businesses to set their sights on the island.

“Government policy, however, constitutes only half the equation,” he said.

“The other half is private enterprise. As business opportunities present themselves, it is for you the entrepreneurs to seize them. Otherwise the business opportunities will simply pass...,” Dominguez said.

Investment opportunities he outlined for Mindanao include building new schools as well as business process outsourcing.

“These projects will draw in billions (of) investments. Tens of thousands of jobs will be created,” he said.