Despite fragile environment, PH growth seen to remain robust

Inflation is expected to remain manageable next year while economic growth would remain robust amid solid macro fundamentals, the government’s Investor Relations Office (IRO) said.

Citing statements made by monetary and economic planning officials during an investor conference call last week, the IRO said in a statement that the country would “continue enjoying favorable growth-and-inflation dynamics in 2017 as more opportunities open up and outweigh the impact of external headwinds.”

“The bottom line is that the Philippines is on a solid footing despite the fragility of the global operating environment,” Francisco G. Dakila Jr., Bangko Sentral ng Pilipinas managing director for monetary policy, was quoted by the IRO as saying during the conference call.

The IRO said officials were optimistic that the economy would achieve the 6.5-7.5 percent growth target for 2017, while keeping inflation within the 2-4 percent range.

IRO executive director Editha L. Martin said attaining the higher 2017 growth goal will retain the Philippines among the best performing economies in Asia-Pacific. The government is targeting a 6-to 7-percent economic growth this year.

In the first nine months, the gross domestic product grew by an average of 7 percent, surpassed in the region only by India’s 7.4-percent expansion.

According to the IRO, “the economic performance of the Philippines is seen to continue even as the global economy enters 2017 with uncertainties arising from key challenges, including change in political leadership and anticipated rise of interest rates in the US, the continuing process of ‘Brexit,’ and slowdown of China and other major economies.”

“The country’s buffers, particularly fiscal and monetary space, will help provide resilience to the domestic economy,” the IRO added, citing officials’ pronouncements during the investor conference call.

For one, Dakila was quoted by the IRO as saying that price stability was expected to be supported by rising investments—evidenced partly by rising imports of capital goods, intermediate goods as well as raw materials.

Rising investments would boost an economy’s productive capacity and the supply of goods and services, Dakila pointed out.

For her part, National Economic and Development Authority Undersecretary Rosemarie G. Edillon said that there would be additional growth opportunities beginning next year, citing for instance progress in Asean economic integration, which would boost Philippine exports to a market of over 600 million people in the region.