Neda chief sees about 7% GDP growth for 2017

The country’s chief economist has anticipated a full-year gross domestic product (GDP) growth hitting the middle of the government’s 6.5-7.5 percent target.

“If we hit close to the midrange we’ll be happy with that, higher or lower than the midrange,” Socioeconomic Planning Secretary Ernesto M. Pernia told reporters on the sidelines of the Senate budget hearing on the proposed 2018 budget of the state planning agency National Economic and Development Authority (Neda).

But Pernia said the top end of the growth target range cannot be achieved this year.

“It will take a miracle to reach 7.5 percent at this point,” Pernia noted.

The Neda chief said he was hopeful that GDP expansion in the third quarter will be better than the growth rates posted in the first two quarters.

The economy grew 6.4 percent in the first quarter and 6.5 percent in the second quarter.

Pernia noted that so far during the third quarter, there was no major typhoon that hit the country.

“We hope that the rest of the year will be mild in terms of weather disturbance,” the Neda chief said.

For the remainder of this year, economic prospects remain rosy, Pernia added.

“I think the external economy is favorable, so in terms of our exports, it is a good prospect for our exports. And then also the spending on infrastructure is going to escalate over the next three months, especially in 2018,” according to Pernia.  /kga