BSP: Philippine economy likely grew within target in Q1
MANILA, Philippines — The Philippine economy likely grew within the government’s expectations in the first quarter of the year on the back of higher infrastructure spending, the Bangko Sentral ng Pilipinas said.
The government has set a 7-8 percent growth target for 2018 until the end of President Rodrigo Duterte's six-year term.
The Duterte administration plans to spend more than P8 trillion to upgrade the nation’s dilapidated infrastructure and aging ports to spur gross domestic product expansion until 2022.
“The government’s commitment to sustain implementation of the programmed infrastructure spending could also provide a boost to domestic activity,” read the highlights of the BSP Monetary Board’s policy review last March 22.
“GDP growth in Q1 2018 is projected to be consistent with the government’s target and remains within the estimated potential output for the past six years,” it added.
The government’s infrastructure expenditures jumped by nearly 44 percent to P50.5 billion in February, higher than the P35.1 billion level a year ago.
The Philippine Statistics Authority is scheduled to release the first-quarter GDP data hours ahead of the BSP’s third monetary policy meeting for 2018 on May 10.
In 2017, the country’s GDP—or the value of all finished goods and services produced in the country—grew 6.7 percent, slower than 2016’s 6.9 percent but still within the government’s 6.5-7.5 percent target range for that year.
The Asian Development Bank expects the Philippine economy to expand 6.8 percent and 6.9 percent in 2018 and 2019, respectively, while the World Bank said that in 2018 and 2019, the economy will likely grow 6.7 percent before moderating to 6.6 percent in 2020.
Meanwhile, the International Monetary Fund retained its GDP growth projection for the Philippines at 6.7 percent in 2018 and 6.8 percent next year. If the IMF’s forecast is realized, it would make the country the fastest growing economy in Southeast Asia and second fastest in the world over the next two years.
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