The Philippine economic growth trajectory is expected to pick up this year, growing between 6.8 percent and 7.2 percent on an upturn in consumption spending amid improving inflation outlook, the First Metro Investments Corp. (FMIC) and the University of Asia and the Pacific (UA&P) said Tuesday.
UA&P economist Victor Abola said the projected economic expansion is within the government’s 7 percent to 8 percent growth target for the year.
“Domestic demand continues to push it forward and is also being led by investments. And we are seeing increased election spending. These are boosters and some spendings as well,” he said.
Abola said the economy will still be driven by industry, construction, and manufacturing.
“Sustained fiscal stimulus from infrastructure spending will also continue to power the economy,” the FMIC and UA&P said.
Abola said the country’s gross domestic product (GDP) likely grew 6.5 percent last year.
The Philippine economic growth averaged 6.3 percent in the first three quarters of 2018.
Meanwhile, inflation is on a clear downward trend and is expected to taper off to 3 percent to 3.5 percent due to the normalization of food supply and lower global oil prices.