by: Sarah Joson
Thursday, September 10, 2015 | Outsourcing News |
Michael Angelo Oyson, Trade chief executive officer and managing director at Bank of the Philippine Islands (BPI), said the “new normal” or standard growth rate for the Philippine economy is 5-6 percent, based on consumer spending. He said the consumer-driven gross domestic product (GDP) can only grow by six percent if public spending improves.
Meanwhile, the Aquino administration is still hoping to reach the 7-8 percent growth this year.
Oyson noted in a briefing that for the GDP growth, the economy is now reaching a stage of standard GDP growth or a “new normal” where a 6-7 percent growth is on the high side. The more realistic projection, he said, is a 5-6 percent GDP growth.
BPI projected that growth will be 6.2 percent for 2015 - growth for 2014 was 6.1 percent.
Oyson pointed out that consumption expenditure is responsible for about four percent of the total 5.6 percent GDP growth in the first quarter.
As for the foreign and stock exchange markets, the Philippines is not yet safe from external risks such as the US Federal Reserve interest rate hike and the slowdown in China.
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