The Philippines is experiencing a unique period of growth and is expected to continue along that path in the short term, according to the Asian Development Bank (ADB). In its 2018 Asian Development Outlook 2018 released on Wednesday, April 11, ADB projected the Philippine economy to grow by 6.8% for this year and 6.9% for 2019, slightly higher than its full-year average of 6.7% in 2017. ADB Country Director for the Philippines Kelly Bird pointed to domestic demand and the government’s infrastructure program as factors that will fuel growth for the next few years. “The Philippines is going through a golden age of growth. It’s been a period of high and sustained economic growth, the longest in 50 years. It’s also been economic expansion that has occurred in a very sound macroeconomic environment,” he said during the launch of the report. Bird noted that compared to previous growth periods, this one “has occurred with relatively moderate inflation along with a strong fiscal position, noting a deficit of 2.2% of gross domestic product (GDP) last year.” “You’ve seen debt as a share of GDP decline to around 42%, the lowest level in terms for 20 years. You have the investment grade credit ratings and we’re also seeing a labor market that is growing robustly. Taking all those factors together, it’s quite a virtuous cycle and that’s why I think it’s a golden age for the Philippines,” he added.
Source:
Chris Schnabel, Rappler, April 11, 2018 (https://www.rappler.com/business/200006-philippines-golden-age-growth-asian-development-bank)