Construction investments likely to contribute to economic growth

Monday, February 6, 2012

INVESTMENT is expected to post a strong growth in 2012 despite the global economic uncertainties, with construction likely to significantly contribute to this year's growth.

The National Economic and Development Authority, in its outlook for 2012 furnished Sun.Star, explained that the construction sector will get a boost from public construction due to continued spending for the government's disbursement acceleration program's projects that were carried over from the previous year, and from the faster budget execution process of government.

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Construction will also get a boost from the acceleration of the implementation of the private-public partnership program this year, said Neda director-general Cayetano Paderanga Jr. We also expect that private construction will remain robust, particularly in the property sector, given the upward momentum in the office sector and the relatively high BPO office demand in strategic areas across the country.

The residential sector is likewise expected to remain supported by the demand from families of overseas Filipinos. The performance of the real estate sector will be complemented by the continued robust performance of the business process outsourcing industries.

We also expect expansion of investments in energy; mining; low-cost housing and office buildings; and the industries in the priority areas such as agribusiness, consumer durables, information technology, health and wellness, transport, telecommunications and especially tourism to contribute positively to the economic growth this year, he added.

The agency head expressed optimism that the performance of the other services sector will benefit from the surge in tourism as we improve our infrastructure, intensify our tourism marketing campaigns and maintain a favorable peace and order situation.

In the second half of 2012, the manufacturing sector is expected to post a remarkable growth as the food sector further expands, election spending providing an impetus up to the national and local elections in 2013, and the electronic industry registering higher growth, he added. (CGC)