Property bucks subdued GDP

The country’s strong macroeconomic indicators—which point to a stable growth over the next 12 to 18 months—are seen to sustain the growth of the local property sector.

In its latest flash report, Colliers International Philippines said the country’s stable gross domestic product growth will be driven by household consumption, which remained robust, while manufacturing and foreign investments’ contribution to aggregate economic output continues to expand.

“Overall, resilient OFW remittances and BPO revenues should sustain strong domestic demand; shield the Philippine economy from global economic shocks; and provide trickle-down benefits to key segments of the economy, including property,” said Joey Roi Bondoc, manager for research at Colliers.

The Philippine economy grew by 6.4 percent in the first quarter of 2017, slower than the 6.5 to 7.5 percent range projected by the government.

Household consumption and government spending were dragged down by the absence of election-induced expenditures, which essentially propped up the economy in the first quarter of 2016.

The country’s GDP in the first quarter of 2017 reflected the dynamism of major economic sectors such outsourcing, construction, tourism, and manufacturing which consequently sustain the demand for key property segments.

Colliers sees the country’s long-term economic growth being anchored on increased infrastructure spending.