Published December 13, 2016 11:55am
The Philippine economy is expected to outperform Southeast Asia, due to an expected increase in domestic consumption and investments, the Asian Development Bank (ADB) said Tuesday.
"In Southeast Asia, growth forecasts remain unchanged at 4.5 percent in 2016 and 4.6 percent in 2017, with Malaysia and the Philippines expecting stronger growth due to a surge in domestic consumption and public and private investment, compared to lower growth forecasts in Brunei Darussalam, Myanmar, and Singapore," the Manila-based lender said in the latest "Asian Development Outlook 2016" report.
The Philippine economy grew by 6.9 percent in the first quarter, 7.0 percent in the second quarter and 7.1 percent in the third quarter, bringing the year-to-date average to 7.0 percent.
Among the growth drivers – moving forward – is infrastructure spending pegged at P8.2 trillion to finance the Philippine "golden age of infrastructure" in the next six years.
For developing Asia, however, the ADB has downgraded the economic growth outlook to 5.6 percent from a previous projection of 5.7 percent due to a slight slowdown in India.
"Asian economies continue their robust expansion in the face of global economic uncertainties," ADB Deputy Chief Economist Juzhong Zhuang said.
"Structural reforms to boost productivity, improve investment climate, and support domestic demand can help maintain growth momentum into the future," Zhuang added. — Jon Viktor Cabuenas/VS, GMA News