Economic growth may hit 7 percent this year, representing the lower end of the government’s mid-term growth target, a London-based think tank said.
International research and analytics firm Capital Economics said the $300-billion Southeast Asian economy was poised to grow between 6 and 7 percent over the medium to long term despite the change in political leadership.
“But there are good reasons to think that [President Aquino’s] achievements will outlast his presidency. We remain optimistic that the Philippines will continue to grow strongly over the coming years,” Capital Economics said in its latest report.
The inter-agency Development Budget Coordination Committee set the gross domestic product growth target at 6.8 percent to 7.8 percent this year, 6.6 percent to 7.6 percent in 2017 and 7 percent to 8 percent in 2018. The economy grew 5.8 percent in 2015.
Meanwhile, British bank Hongkong and Shanghai Banking Corp. raised the Philippines’ growth outlook this year to 5.9 percent from an earlier estimate of 5.7 percent, on robust private consumption.
“The economic outlook for the Philippines is robust for the time being. However, there are long-term issues that may come back to haunt the country if not resolved,” HSBC said in a report.