Business groups expect the economy to sustain its strong performance throughout the year if the administration will implement its 10-point economic agenda and pursue investments in key areas such as infrastructure and agriculture.
A strong services sector, remittances from overseas Filipino workers, sustained domestic consumption and the government’s plan to invest heavily in education and healthcare were among the factors seen to help the economy grow as fast as the last quarter throughout the rest of 2016.
The economy grew by 7 percent in the second quarter this year, bringing the average gross domestic product growth in the first semester to 6.9 percent.
“With the 10-point economic agenda of the administration, coupled with continued dialogue that started with the Sulong Pilipinas in Davao last June, we are confident that sustaining and nurturing a healthy Philippine economy can be achieved, not only for a short-term but for the long haul,” Makati Business Club executive director Peter Angelo V. Perfecto said in a text message.
Sustaining the GDP growth seen in the second quarter, he said, could be supported by an open dialogue between the government and business.
“What a regular public-private dialogue does is to tackle in a straight forward manner the real challenges that limit investors’ capacity to invest some more and expand operations, which in turn allows us to create more jobs.” he said.
Management Association of the Philippines president Perry L. Pe said he was also expecting the strong growth to be sustained with increased government infrastructure spending, private sector construction, consumer spending and foreign direct investment inflows, and the continued growth of the business process outsourcing sector.
Both the Philippine Exporters Confederation Inc. and the Philippine Chamber of Commerce and Industry (PCCI) expressed optimism that the economy would continue to chart a strong growth path.
“I think growth can be sustained although I expect slower growth in the third quarter as the new administration has yet to fully roll out its programs. I think the fourth quarter may see a GDP growth that may even be higher than 7 percent,” Philexport president Sergio R. Ortiz-Luis Jr. said in a phone interview.
PCCI president George T. Barcelon, however, expects a conservative full-year growth of 6.8 percent this year.
Barcelon said the stellar performance in the second quarter could be attributed largely to election spending. Although remittances, domestic consumption and different industries are expected to boost economic activities throughout the rest of the year, the new administration has yet to address the infrastructure gaps, inadequacies in the agriculture sector and tempered remittances due to the problems faced by OFWs employed by oil-related firms in the Middle East.
John D. Forbes, senior adviser at the American Chamber of Commerce of the Philippines, added: “The Philippines has the potential to grow even faster than 7 percent when the economy runs on all cylinders, including good infrastructure, agriculture, and responsible mining.”