WORLD Bank projections showed that the Philippine economy will grow at a more rapid pace than Asia’s other regional economic powerhouses, such as China and Malaysia, during the remaining half of the Duterte presidency.
Finance Undersecretary Gil Beltran said the World Bank’s projections are anchored on the Philippines’ solid external stance and “highly domestically driven” economy, which provides it “ample cushion” against external headwinds that are generally foreseen to slow down global growth this year.
“The Philippines is also expected to remain as an attractive destination for foreign direct investments. We are pushing for further liberalization of investment ownership in the country,” said Beltran, the chief economist of the Department of Finance (DOF), during a recent media forum.
Beltran also cited the country’s strong fiscal performance and tax reforms, which will support President Duterte’s massive “Build, Build, Build” infrastructure modernization program and ensure that the economy’s “growth momentum will be sustained.”
“Moreover, the Philippines has implemented monetary and non-monetary policies to keep inflation manageable and bring it back to the government’s target range of two to four percent this year,” he said. “Perceived overheating risks have abated, driven by government measures and policies.”
Growth forecasts
Beltran said World Bank forecasts show that the Philippines’ gross domestic product (GDP) is expected to grow by 6.4 percent this year, second only to Vietnam’s 6.6 percent, and higher than China’s 6.2 percent, Indonesia’s 5.2 percent and Malaysia’s 4.6 percent.
In 2020 and 2021, the Philippines’ GDP growth of 6.5 percent for these periods will equal Vietnam’s 6.5 percent and surpass China’s 6.1 and 6.0 percent, respectively. The Indonesian economy is projected to expand 5.3 percent for 2020 and 2021, while Malaysia will maintain its growth at 4.6 percent during these periods.
Beltran noted that tax reform has also led to a strong revenue performance, with total revenues growing 15.2 percent from P2.473 trillion in 2017 to P2.850 trillion in 2018, the first year of implementation of the Tax Reform for Acceleration and Inclusion Act. (PR)