FPI bullish on GDP growth

MANILA, Philippines — The Federation of Philippine Industries (FPI) is optimistic the country’s economy will grow this year, driven by more construction and manufacturing activities.

On the sidelines of the Global Anti-Illicit Trade Summit, FPI chairman Jesus Arranza told reporters that he expects gross domestic product (GDP) to improve, pointing out that the construction and manufacturing sectors as key drivers of the economy’s growth.

Latest data from the Philippine Statistics Authority (PSA) showed that the country’s GDP grew by 6.4 percent in the first quarter, its slowest growth in two years, as high prices dampened consumption..

Arranza, however, identified setbacks in the manufacturing sector, particularly the presence of smuggling.

Stratbase ADR Institute president Dindo Manhit said earlier there is a need for investments in the manufacturing sector to meet the growing demands of consumers.

“If given more support by the government, the country’s manufacturing sector can help ensure the upward and stable growth of the economy,” Manhit said.

“Investments in the manufacturing sector will lead to a domino effect that will increase productivity, create high quality jobs, provide income and food security, enable the affordability of goods, and spur consumer spending. But then again, setting up a manufacturing operation requires a significant investment in infrastructure, workforce, and knowledge capital,” he said.

Despite the slower GDP growth in the first quarter, National Economic and Development Authority Secretary Arsenio Balisacan said earlier that the economy is normalizing its previous trend.

“The better-than-expected first-quarter performance this year implies that we are returning to our high-growth trajectory despite the various challenges and headwinds we have faced,” he said.

All the major economic sectors posted positive growth in the first quarter with agriculture, forestry and fishing rising by 2.2 percent; industry by 3.9 percent; and services by 8.4 percent.