The Philippines is poised to post a steady and strong economic growth next year with the implementation of tax reforms and massive infrastructure projects, Economic Planning Secretary Ernesto Pernia said Thursday.
“Seeing these developments, we see steady and strong economic performance continuing in 2018,” Pernia said in his year-end report.
Pernia said with the Philippine Development Plan already in place and following the approval by the National Economic and Development Authority board of 20 infrastructure projects, “next year should pave the way for more projects rolling out.” He said the ground-breaking of Clark International Airport expansion was in fact set on Dec. 20 this year.
Pernia said the implementation of the Tax Reform for Acceleration and Inclusion Act would boost the revenue-to-GDP ratio and fund the government’s massive infrastructure program that could eventually increase the spending capacity of the average working Filipinos.
He also mentioned the successful launch of the Philippine Development Plan 2017-2022, the latest upgrade of the Philippines debt score to “BBB” from “BBB-“ by Fitch Ratings, the stronger trade and economic partnerships with other countries and the recovery of the war-torn Marawi City in Mindanao.
The economy grew by 6.7 percent in the first three quarters of 2017, spurred by robust domestic consumption, higher government fiscal spending and global recovery. This is well within the government official target range of 6.5 percent to 7.5 percent for the year.
“Our macroeconomic fundamentals remain firm and stable. Inflation keeps within target, and trade continues to grow. Underemployment rate also declined to its lowest level in 10 years,” he said.
Pernia said the raising of the country’s credit rating by Fitch would not only boost investor confidence but also encourage the whole of government to be efficient and swift in implementing the Philippine Development Plan as well as the Regional Development Plan.
“We also expect to spend more on infrastructure development to help improve regional connectivity and ease the cost of doing business in the country,” he said.
“Truly, there is much to look forward to in 2018, and we are all very excited to see much-needed reforms realized next year,” Pernia said.
The government expects the economy to grow between 7 percent and 8 percent in 2018.
The Asian Development Bank on Wednesday raised its growth projection for the Philippines this year to 6.7 percent from an earlier estimate of 6.5 percent. The bank also sees growth picking up to 6.8 percent in 2018.
Neda approved 20 project proposals this year, including 14 new projects and six changes in ongoing projects. Most of these projects will be funded locally or through official development assistance loans.