Despite the downside risk of recent inflation in the Philippines, the International Monetary Fund (IMF) projects a 6.6 percent economic growth outlook by 2019. On the other hand, the inflation forecast is estimated to reduce by 4 percent amid a 6.7 percent current inflation rate. The IMF cites a weaker peso, higher excise taxes and rising global oil prices as key inflation drivers.
The World Bank’s Economic Update on the Philippines presents a positive growth direction in terms of sustainability and inclusiveness, notwithstanding the Philippine government’s efforts to tackle domestic risks through careful fiscal management and timely implementation of tax reforms and public investment programs such as the “Build, Build, Build” scheme of the administration of President Rodrigo Duterte. Infrastructure spending is rising year-on-year with 44 out of 75 projects already implemented. Known for his strong political will and decisive leadership, Duterte wants urgent implementation of these projects especially in areas with potential for investing in business.
This is an exerpt from an article appearing in ASEAN Briefing, a subsidiary of Dezan Shira & Associates. For the latest economic, regulatory and business news from ASEAN, visit aseanbriefing.com.