CLARK FREEPORT ZONE, Pampanga — World Bank is projecting the Philippines’ Gross Domestic Product (GDP) to accelerate to 6.7 percent this 2018, up from 6.6 percent last year.
Speaking before Central Luzon stakeholders during the recent Philippine Economic Briefing in Clark, National Economic and Development Authority Director-General Ernesto Pernia said the country is going to perform better than China this year based on this forecast.
“The forecast of the World Bank is about 6.7 percent GDP growth rate this year but we expect to do better than 6.7 percent,” Pernia stated.
In terms of the drivers of growth, household consumption as well as government public spending on infrastructure will be the key drivers of economic growth on the spending side.
“Exports, though still performing lower than imports, are going to be performing better in the coming years given that the global economic growth has been forecast to do better this year than last year. In fact, we have surpassed the 3.7 percent forecast of the International Monetary Fund with 3.9 percent global economic growth rate that impact directly on our exports,” he explained.
On the supply side, Pernia said construction and infrastructure development will play a big factor.
In addition, manufacturing resurgence and the service sector will continue to be the biggest chunk of the economy on the supply side.
Agriculture is likewise expected to be performing better this year than last year.
However, despite these milestones, he reminded the public to be vigilant to threats to ensure that these projections will be achieved. (CLJD/MJLS-PIA 3)