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By: Marvin Germo | January 24, 2019

The Economy is still going.

The Philippine Gross Domestic Product (GDP) grew 6.2 percent compared to the revised 3rd quarter figure of 6 percent, but still missed the already downgraded 6.5 – 6.9 percent goal. On the bright side, this is the seventh consecutive year that the Philippine economy sustained its growth of more than six percent.

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What caused it to miss its target?

Higher excise taxes on consumption, global oil prices, and food supply delay were believed to be the cause of 2018’s slower economic pace, hitting a 10-year high of 5.2 percent in inflation last year.

What were the bright spots for the 4th Quarter?

While the country missed its target, it still bounced back with the help of several main growth drivers for the fourth quarter of 2018. These are construction; trade and repair of motor vehicles, motorcycles, personal and household goods; and other services.

Among the major economic sectors during the fourth quarter of 2018, Industry had the fastest growth, with 6.9 percent. This was followed by Services, which grew by 6.3 percent, and Agriculture, by 1.7 percent.

Why is our GDP still good?

The Philippines overtook its neighbouring countries, Indonesia and Thailand, in terms of economic growth throughout the year. The Philippine economic managers considered the year-end figure to be a firm finish that cements the Philippines’ standing as one of the fastest-growing economies in Asia.

What else can be done to improve status quo?

The government has to address policy uncertainties, and improve the Philippine overall competitiveness. Notably, the current administration has aggressively pushed its Build Build Build agenda, and we hope to see greater infrastructure development in the coming years.

Moreover, the Philippines must create a sound business environment for trade and investments. Several economic reforms are underway; momentum should not be lost, not even with the upcoming elections.

What GDP can we look forward to this 2019?

The government targets a higher 7-8 percent GDP growth in 2019. We can also anticipate that consumption will recover as inflation simmers down, among other factors.

Like I said before, 2019 is Election year. Meaning election-related spending is expected to boost our country’s GDP.

SEA games will also be held this year, so there will be a lot of spending that will happen before, during, and after the Sea Games period. This can also boost our economy in terms of Tourism.

Also, Inflation is expected to lower, Remittances is till high, and the BPO sector continues to protect our economy.

All in all, 6.2% is still high. The Philippine economy has been going strong and steady, and this is still one of the greatest time to invest.


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