Socioeconomic Planning Secretary Ernesto M. Pernia (File photo by JOAN BONDOC / Philippine Daily Inquirer)
The economy likely grew faster than the nine-month average of 6.7 percent during the fourth quarter, with annual growth seen breaching the 7-percent mark next year on the back of the massive infrastructure buildup, the country’s chief economist said.
“We can say that we are well on the way to reaching our full-year growth target of 6.5-7.5 percent” this year, Socioeconomic Planning Secretary Ernesto M. Pernia told reportersThursday.
Pernia, who heads the state planning agency National Economic and Development Authority, said gross domestic product (GDP) growth for 2017 could settle within the range of 6.7-6.9 percent.
For the fourth quarter, Pernia said GDP growth would be “a bit higher than 6.7 percent.”
Pernia said ramped up government spending, sustained exports growth and robust consumer spending as well as recovery in the agriculture sector will boost fourth-quarter GDP expansion.
For next year, Pernia said the “Build, Build, Build” infrastructure program would bolster GDP growth, which the government expects to further rise to 7-8 percent.
Even as multilateral institutions had projected economic growth in 2018 to be below the government’s target range, Pernia expressed optimism that “we’ll enter the full-year 7-percent growth territory next year.”
Pernia said rolling out at least six big-ticket infrastructure projects next year would help achieve the growth target.
The Duterte administration early this year unveiled the “Build, Build, Build” program aimed at ushering in “the golden age of infrastructure” after years of neglect.
Under “Build, Build, Build,” the government would rollout 75 flagship, “game-changing” infrastructure projects, with about half targeted to be finished within President Duterte’s term, alongside plans to spend a total of up to P9 trillion on hard and modern infrastructure until 2022.