The Philippines is in a league with Asia’s “new rising stars” that can be at the vanguard of global economic recovery, despite an expected slowdown in gross domestic product (GDP) growth after a faster-than-expected expansion in 2022, according to Nomura Holdings.
The Tokyo-based global financial services group’s Global Market Research team took part in the Philippine Business Opportunities Forum held on Feb. 10 during the working visit of President Marcos to Japan.
In a commentary penned by economists Euben Paracuelles and Ranga Cipta, Nomura said they expect Philippine GDP to grow by 5.5 percent this year after 7.6 percent in 2022, before picking up pace again to 6.3 percent in 2024.
“The priorities of the government discussed [in the forum] support our view that the Philippines belongs to a group of Asia’s new rising stars that can lead the global recovery beyond this year,” Nomura said.
In particular, Nomura noted the Marcos administration giving emphasis on infrastructure development, with a goal of maintaining yearly infrastructure spending at 5 percent to 6 percent of GDP.
The Japanese group said the goal for the spending ratio was higher than the prepandemic average of 4.7 percent of GDP that they estimate for the 2016-2019 period.
“Consistent with this high prioritization, the 2023 budget has allocated P1.3 trillion (5.5 percent of GDP) for the ‘build, better, more’ program, the bulk of which comprises transport infrastructure projects such as road networks and railways,” Nomura said.
Also, Nomura noted that there are more than 2,000 projects identified in the pipeline, amounting to a total $290 billion over the next six years, including 190 flagship big ticket projects worth $140 billion.
Last week, Secretary Arsenio Balisacan of the National Economic and Development Authority said Japan will help drive the implementation of the Philippine Development Plan.