MANILA — The Asian Development Bank (ADB) has upgraded its gross domestic product (GDP) growth forecasts for the Philippines this and next year on the surge of the government’s infrastructure program. The ADB also expect the country to remain the fastest growing economy in Southeast Asia.
ADB raised the Philippine Gross Domestic Product (GDP)growth forecasts from 6.5 percent to 6.7 percent for 2017, and from 6.7 percent to 6.8 percent for 2018.
“This outlook assumes that growth in the government’s infrastructure program will accelerate, supported by improvements in budget execution, with more large investment projects under way,” said in a supplement to its Asian Development Outlook Update 2017 report.
The Philippines and Vietnam are expected to reach the same growth level this year. In 2018, the country, however, is forecast to outpace Vietnam with GDP growing by 6.7 percent.
The Philippine economy expanded by 6.7 percent in the first three quarters of 2017 on accelerating investment and robust consumption. Public expenditure accelerated, particularly for infrastructure.
The government is on track to achieve its target of spending 5.3 percent of GDP on public infrastructure this year.
Apart from the Philippines, the ADB also upgrade its growth forecasts for Brunei Darussalam, Malaysia, Singapore, Thailand and Viet Nam, as economic growth in Southeast Asia is picking up faster than forecast in September.
“GDP is now seen to expand by 5.2 percent in 2017 and 2018. The subregion is benefiting from robust investments and exports,” it added. (PNA)