Economist Intelligence Unit (EIU), a forecasting and consultancy firm based in London, predicted that the growth for the Philippine economy will be marginally slower compared to last year.
In EIU’s assessment, the Philippines posted a growth of 7.2 percent last year brought on by the private consumption and investment. However, for this year, they are projecting that the economy will grow 6.8 percent.
The government is eyeing to reach a 6.5-7.5 percent growth for the country’s gross domestic product (GDP). This year’s first quarter only posted a 5.7 percent growth, while 2013’s 7.2 percent surpassed the official 6-7 percent growth target.
EIU noted that the growth of the economy will still depend on the country’s private consumption. The growing demand for housing transport service reinforces the notion that private consumption is rising, which is chiefly caused by the country’s workforce and remittances from overseas Filipino workers.
The organization added that private and public investments are predicted to drive growth. For instance, the reconstruction effort from last year’s super typhoon is cited as crucial motivation for the government to spend. On the other hand, demand for homes and office space are anticipated to boost construction investments. For public investments, spending is still tagged as inadequate due to the pre-existing bottlenecks in infrastructure and project outlays.