Stronger economic growth seen in 2019

MANILA, Philippines — The Philippines’ biggest business group sees stronger economic growth next year on the back of robust consumption, election spending in May and implementation of infrastructure projects ahead of the country’s hosting of the Southeast Asian Games in November.

“Our economic outlook for 2019 is still strong, backed by robust consumer spending and stronger government expenditures. We agree with the projections of the Asian Development Bank and the World Bank that see a growth rate of 6.7 percent for 2019 despite rising global uncertainty,” the Philippine Chamber of Commerce and Industry (PCCI) said in a statement.

“Indeed, we continue to be recognized as one of the more resilient economies in Asia,” PCCI said.

It said the administration is expected to spend heavily on infrastructure under its Build, Build, Build (BBB) program. Full year growth target for this year is at 6.5 percent to 6.9 percent.

In the third quarter, the economy grew 6.1 percent, lower than the 6.2 percent in the second quarter and the 7.2 percent in the third quarter last year.

PCCI said while foreign direct investments (FDI) reached a historic high of $10 billion last year, there are indications 2019 would be another banner year.

PCCI said foreign tourist arrivals this year, meanwhile, are also seen to surpass last year’s record of 6.6 million arrivals. 

“We in PCCI believe that investment growth will eventually catch up as higher public capital outlays, including increased infrastructure spending, will be undertaken more aggressively under BBB,” the business group said.

With its positive outlook on the economy, PCCI said there is greater need for government to address challenges in doing business in the country.

In particular, it said the government should work on streamlining and harmonizing business permitting and licensing systems and finalize the implementing rules and regulations (IRR) for Republic Act 11032 or the Ease of Doing Business Act.

The Department of Trade and Industry submitted the IRR for the Ease of Doing Business Act to the Office of the President last Oct. 22.

Apart from improving ease of doing business in the country, the PCCI said the government must also take steps to address congestion at the ports.

“For the BBB to create jobs, government should be able to settle the issue of jobs contractualization to create certainty in the labor market,” PCCI added.