Increased public spending, investment, and private consumption will lift economic growth in the Philippines over the next two years, but long-standing structural weaknesses remain an obstacle to reaching the government’s 7-8 percent growth target, the Asian Development Bank (ADB) says in a major new report.
ADB’s Asian Development Outlook 2012 (ADO 2012) said gross domestic product (GDP) growth for the Philippines is estimated to recover to 4.8 percent in 2012 and 5 percent in 2013, after posting a lackluster 3.7 percent in 2011.
"Remittances and lower inflation will sustain private consumption, and strong business sentiment will continue to support private investment. A pickup in public investment and accommodative monetary policy will also aid the Philippine economy," said Neeraj Jain, ADB’s Country Director for the Philippines.
(Source: Manila Bulletin)