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Saturday, November 25, 2017

PH seen sustaining 7% yearly economic growth momentum

Published

By Chino S. Leyco

Finance Secretary Carlos G. Dominguez III expressed confidence that the Philippines can sustain its current economic growth pace over the medium term amid the Duterte administration’s infrastructure modernization program.

Finance Secretary Carlos G. Dominguez III

Finance Secretary Carlos G. Dominguez III

In a statement, Dominguez said the country would sustain its 7 percent Gross Domestic Product (GDP) expansion, noting the government’s P8.4-trillion “Build, Build, Build” infrastructure program will be the key driver of growth over the next few years.

“The 6.5 percent growth for the first semester makes the Philippines the second fastest growing economy in Asia after China. We retain the 7 percent growth rate target for the year, spurred by the investment spending in the infrastructure program,” Dominguez said.

“We believe this growth rate is sustainable well into the medium term,” he added. “Increased investments in modernizing the country’s infrastructure will be the key driver of our growth the next few years.”

“These investments seek to bring up our infrastructure to match those of our most progressive neighbors. By modernizing our infrastructure, we will address congestion in our ports, airports and roads,” the finance chief said.

To maintain fiscal discipline while embarking on the ambitious infrastructure buildup plan, Dominguez said the government is working on the congressional approval of a tax reform package in order to spell a steady revenue stream for its priority programs.

“Investing in infrastructure has the highest multiplier effect on the economy. It creates construction jobs in the short term and manufacturing jobs in the long term. It improves land prices, assists in raising our agricultural productivity and encourages dispersal of our industries into the regions,” Dominguez said.

According to Dominguez, infrastructure is “the key to overcoming the challenges posed by our archipelagic topography, especially uneven regional development and isolated island economies.”

He said the Philippines can no longer postpone infrastructure modernization and increased investments in human capital development, given the changing economic landscape in the ASEAN region, which is swiftly clearing the way toward regionalization.

The Philippines, Dominguez said, has a relatively younger workforce than those of its neighbors in the region, which can be transformed into a “demographic dividend” if the country invests heavily in education, health and other forms of human capital formation.

“The task is made easier by the increased regionalization of the economy. By 2022, we expect a functioning common market for the ASEAN region. By bringing our infra to regional standards, lowering power costs and improving on governance, regionalization should translate into greater trade and more intensive economic exchanges,” Dominguez said.

“The timetable set by the ASEAN Free Trade Area (AFTA) means we can no longer postpone modernization of our infra and postpone the training of our young to be functional in a globalized economy. We can no longer have a deficient bureaucracy and substandard governance,” he added.

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  • R_RR

    Positive! Great….

  • Dutae Special

    Ano lower power cost eh ngyon palang gusto mo itaas ang fuel thru higher excise tax. di tataas lahat niyan including power. Kasing ugali mo rin si dutae domiguez sinungaling at puro promises na hindi natutupad.

    • Spark2013

      Another hopeless comment from a hopeless LP troll……I’m actually planning of making a group for you….The Crying Ladies.

      • GuyWhoCares

        Tataas naman talaga. Bakit ba ayaw niyong tanggapin ang katotohanan na ang TRAIN ay masama sa masa at middle class. Yong mga mayayaman, walang pakialam yong mga yan kasi hindi nila mararamdaman ang epekto ng pagtaas ng presyo ng mga bilihin. Tama ang sabi ni JV Ejercito, na ayusin lang ang BOC at BIR, kahit walang train, magkakaroon ng pera para sa mga projects na yan.

      • GuyWhoCares

        Bakit hindi ba tataas bilihin kapag natuloy ang implementation ng TRAIN?

    • Februcreme

      Kayo ang gumagawa nyan sa dating nyong administrasyon. Si PD30 nalang ngayon ang nag-aayos. Mapagkunyari ka. Yung mga katangahan nyo pinapasa nyo kay Digong. Mahiyahiya ka naman. Kumita na kayo tapos isisisi nyo sa nakaupo ngayon yung epekto ng korupsyon nyo. Whaaaaaa……

      • Dutae Special

        so kung ayaw mo kay duterte dahil sa pamamalakad niya kaw ay pro dating administrasyon. galing siyo yan hindi skin. typical dutaeretard ka nga.

    • R_RR

      Hoy , may tax reform package at may dahlian ang excise tax. D ka ba nagbabasa? Anong puro promise? Within schedule naman lahat. Di yan instant noodles.

      • Dutae Special

        hoy kung kaw gusto magbayad malaking presyo ng gas at mga bilihin kaw na mayaman. dami na nga kinukuha taxes sa taong bayan wala pa nasisimulan projecto puro parin drawing hanggang ngyon.

        • R_RR

          Gunggong umalis ka ng pilipinas pag ayaw mo.!

        • R_RR

          Si Panot 6 taon ni isang train station , nganga hahahaha. Nag order nga nang bagon d naman magamit.

  • Februcreme

    This is a very good prediction. If the 7% annual economic growth is sustatainable then it could lift up millions of our people from poor to middle class status. Go! go! go

  • jun

    long live pinas under duterte…. dieee u fookinggg yellowtardsss hehehehe

  • concerned citizen

    “Investing in infrastructure has the highest multiplier effect on the economy. It creates construction jobs in the short term and manufacturing jobs in the long term. It improves land prices, assists in raising our agricultural productivity and encourages dispersal of our industries into the regions,” Dominguez said.

    You forgot tourism. With the advent of these infrastructures, economists and bankers are expecting tourist arrivals to double up from 7 million to 14 million by 2022 and could even reach as high as 33 million if the private sector particularly the tourism sector does its job as well. If each tourist would spend USD500, that could mean USD7 billion to USD16.5 billion.