MANILA — The Philippines is seen to regain its robust economic growth next year, with the gross domestic product (GDP) expansion expected at least 7 percent, after slowing down this 2014.
Department of Trade and Industry (DTI) Secretary Gregory L. Domingo told reporters that the country will return to its robust growth in 2015 with the falling world oil prices which will cause lower inflation rate.
“It will reduce the disadvantage of some of our industries which will make us more competitive again,” Domingo added.
He also mentioned that the sustained strength of the services sector, continuous flow of remittances, and better performance of agriculture sector will push the GDP growth to boom next year.
The DTI chief noted that the public-private partnership (PPP) projects as well as the higher budget for infrastructure for next year will back the projected 7-percent-and-above GDP expansion.
He added that as the 2016 national election is also approaching, election-related spending is expected to contribute to the economic growth by the second half of 2015.
In 2015, the country will also host the Asia-Pacific Economic Cooperation (APEC) Summit which will push for more vibrant business environment.
Commenting on the slower economic expansion this year, Domingo attributed the trend to the effects of typhoon “Yolanda,” Manila port congestion, and the Disbursement Acceleration Program (DAP) issue.
“The DAP issue has a big effect to our GDP. The issue has slowed down the government spending,” he said.
He noted that the slower economic growth rate this year is a normal trend after the country’s GDP growth boomed in 2013.
GDP in the third quarter (Q3) of this year only grew by 5.3 percent, from 5.7 percent in Q1 and 6.4 percent in Q2, bringing the average growth at 5.8 percent for the first three quarters of the year.
In 2013, GDP growth rate was posted at 7.2 percent after growing by 7.8 percent in Q1; 7.5 percent in Q2; 7 percent in Q3; and 6.5 percent in Q4.