Philippines optimistic on meeting growth goal despite US Fed move
The Philippines’ chief economic planner said Thursday the country can meet its growth goals despite the rate hike by the US Federal Reserve.
“That was largely been anticipated so (this isn’t) really a surprise so the central bank and the financial community, financial sector has been prepared for that,” Socio Economic Planning Secretary Ernesto Pernia told reporters during the year-end press briefing.
Pernia said some “fine-tuning” may be done when an interagency economic coordination committee meets on December 20.
He also mentioned Chinese delegations, led by their NEDA counterpart had been following up with their commitments to the Philippines.
“They are really eager in putting into practice or actualizing their commitment so they come here. They were from the National Development and Reform Commission. the counterpart of NEDA in China, although it’s much more powerful. It’s really a super ministry and so they can decide on many things more easily than NEDA,” Pernia said.
“Anyway, they came here to follow up on the commitments so (even if we don’t) ask them to come they came and they said let follow up on the commitments that had been made by the government in terms of investment,” he said.
In his statement, Pernia said “the Philippines remains as one of the fastest-growing economies in Asia today, faster than China, Vietnam, Indonesia, and Malaysia.”
Pernia, also director general of the National Economic Development Authority (NEDA) is confident the government will achieve its gross domestic product target this year.
“With a 7 percent GDP growth in the first three quarters, we are sure to achieve, if not surpass, our target of 6 to 7 percent growth for the whole of 2016,” Pernia said.
Pernia said on the demand side, the “household consumption as well as investments in construction, public infrastructure and durable equipment drove economic growth.”
“This was supported by low inflation, low interest rates, better labor market conditions and the steady growth in the remittances of our overseas Filipino workers,” he said.
“From the supply side, we see the agriculture sector starting to recover, finally breaking five consecutive quarters of decline. Growth in industry, particularly manufacturing, construction and utilities, accelerated. The services sector likewise improved overall, with stronger expansion in trade, finance, real estate, and public administration,” Pernia said.
“With such good growth performance, we are setting our GDP growth target next year to between 6.5 and 7.5 percent,” Pernia added.
Rosemarie Edillon, NEDA assistant director general, said international events next year will contribute to growth.
“For 2017 we actually have number of stimulus, beginning we have Ms. Universe it will be a big boost to our tourism,” she said.
“All throughout the 2017 there is our chairmanship over the ASEAN and as you know it is the 50th anniversary of ASEAN. It’s not just any ordinary ASEAN hosting here again It will be a good boost to our tourism industry and the good thing about tourism it is something like bringing the market to the doorstep of people outside Manila,” she added.
Pernia also noted that the “chairmanship of the ASEAN Summit next year will be a perfect opportunity for the Philippine government to forge more partnerships with our neighbor countries.” Robina Asido/DMS
