At the Philippine Chamber of Commerce and Industry Forum, Roberto Juanchito T. Dispo, President at First Metro Investment Corp. said they predict a 7.5-8 percent growth for the Philippines’ gross domestic product this year. The growth will likely be driven by the rehabilitation efforts for the regions hit by super typhoon Haiyan, and increased investments in the country.
The growth projection for this year is higher than the 7-7.5 percent forecast that was released before the 2013 GDP results went public last month. In 2013, the Philippine economy grew 7.2 percent, surpassing the 6-7 percent target.
Meanwhile, a 6.5-7.5 percent goal has been set for 2014.
Dispo added that P404 billion were allocated for the improvement of infrastructure, and P130 billion for rehabilitation efforts. The latter is expected to drive employment opportunities and investments in regions devastated by the typhoon. He also pointed out that the increased spending activity in the BPO and manufacturing industries will contribute to economic growth.
However, the executive noted that in order to achieve higher growth, several issues should be addressed. These include lack of research and development investments, as well as high power and unemployment rates.
Dan Steinbock, Research Director at the India China and American Institute, also had positive outlook for the growth of the Philippines, saying the 7.5 percent target is attainable. He said BPO, remittances, and government-driven investments will support the growth. However, the volatile environment of economies worldwide will remain a challenge.