DTI chief: Philippines still seen as investment magnet

CEBU, Philippines — The Philippines remains attractive to both local and foreign investments given its strong domestic economy and young population, Trade and Industry Secretary Ramon Lopez said.

Lopez said the country's strong domestic economy is mainly driven by the growing middle income class and the widening consumer base brought about by lower unemployment rate and growing population.

"Aside from the economic potential of the Philippines, this gives a compelling reason the country remains a choice for both local and foreign investments," the trade chief told businessmen at the recent 43rd Philippine Business Conference and Expo in Manila.

He said private sector investments continued to increase, growing by 36 percent from January to September this year.

In the first half of 2017, the Philippine economy grew an average of 6.4 percent, one of the fastest in Asia.

Lopez said the country is projected to grow by 7-8 percent through 2022.

The trade secretary also noted the Philippines' strong growth is being complemented with manageable inflation, and strong and resilient financial system.

The country's attractive demographics, characterized by a young population, is also luring investors.

"Our population of 105 million is relatively young compared to other countries with average age of 23," Lopez said.

Moreover, he particularly cited significant growth in the industry sector particularly manufacturing.

He also cited the recovery of the exports sector which had grown double-digit year-to-date.

Data from the Philippine Statistics Authority showed the country’s total exported goods in August 2017 increase by 9.4 percent to $5.5 billion from $5.04 billion registered in the same period a year earlier.

Growth slowed from 11 percent in July but represented a turnaround from the revised 1.8 percent contraction in August 2016.

Year-to-date merchandise exports totaled $42.105 billion, up 13.3 percent growth. Goods imports, meanwhile, were at $59.15 billion, up 8.2 percent, bringing the trade deficit to $17.05 billion in the eight months to August.

The National Economic and Development Authority (NEDA) earlier said the increase in export activity was boosted by shipments to the Association of Southeast Asian Nations and the European Union, which grew 13.9 percent and 31.3 percent respectively during the month.

NEDA also noted that total trade — the sum of exports and imports — hit $13.42 billion in August, up 10 percent year on year and a “significant jump from June (1.5 percent) and July’s (2.5 percent) growth.”

Economic managers have said that they expect government spending to significantly pick up during as more infrastructure projects are rolled on the second year of the Duterte administration.

This year alone, the state is looking to spend P847.22 billion on public infrastructure projects, which will account for 5.3 percent of GDP.

This forms part of the P8.44-trillion infrastructure program in the next six years through 2022.

Gross domestic product (GDP) rose 6.4 percent during the first six months of the year, below the government’s 6.5-7.5 percent growth goal.

Socioeconomic Planning Secretary Ernesto Pernia had said full-year growth would likely settle around the midpoint of the target range, saying that hitting 7.5 percent could be a miracle as it would take the economy to expand by 8.6 percent during the second semester. (FREEMAN)