MANILA, Philippines - The National Economic and Development Authority (NEDA) is sticking to its seven-percent growth forecast for 2016, confident that structural and policy reforms will continue to be implemented by the new administration.
In a press briefing yesterday, Economic Planning Secretary and NEDA director general Arsenio Balisacan said they are optimistic the country’s gross domestic product (GDP) will expand six percent this year.
“The Development Budget Coordination Committee (DBCC) would meet next week to firm up the outlook for 2016 and 2017,” he said.
He said all domestic and external indicators point positively as the global economy continues to recover.
Even the recent US interest rate hike would make little difference over the country’s growth outlook, he said.
Balisacan said the recent hike in interest rates by the Federal Reserve Open Market Committee involved short-term capital accounts, and would have no impact on direct investments.
In the past years, the Philippine economy outperformed the rest of the region as it had strong fundamentals driven by domestic consumption.
However, foreign direct investments must be added to strong consumption for the Philippines to attain a middle-income status.
More investments should lead to more quality employment, thus raising the per capita income of the population.
The World Bank definition of middle-income country means a per capita income from $4,125 to $12,735. The Philippines is at a little over $2,000.
In the past five years (2010-2014), the country’s average annual growth was 6.2 percent, considered among the highest. In the 1990 to 1999 period, the GDP averaged a mere 2.8 percent but improved slightly to 4.5 percent in 2000 to 2009.
“The growth trajectory is still upwards, and we hope the next administration will continue the reforms,” Balisacan said.