MANILA, Philippines – The economy of the Philippines could climb as much as 6.9 percent this fourth quarter as a boost in public spending sustains.
Benjamin E. Diokno, Department of Budget and Management Secretary, stated that increased spending by the government could push the economic growth up to 6.9 percent between October and December despite being slower than last quarter’s target-exceeding 7.1 percent record. If this realization occurs, the full-year registration could settle at the higher end of the government’s target.
Diokno was asked concerning his prediction on the fourth quarter. According to him, people are forecasting 6.9 percent for the entire 2016. This pertains to fourth quarter’s 6.9 percent or seven percent attainment. Furthermore, all concerned are anticipating a spending slowdown due to the shift in administration. Nonetheless, it did not occur and the government is on track, remaining bullish on the implementation of the budget on January 1.
The revision will likely be done by the Asian Development Bank (ADB), which is an upward change to 6.8 percent this year, due to astounding third quarter economic outturn. In September, the financial firm predicted a 6.4 percent growth.
Shanaka Jayanath Peiris, International Monetary Fund Country Representative, stated that they would probably recast and increase their Philippines growth forecast following the surprising third quarter results.
The gross domestic product (GDP) data of the country climbed by seven percent on the average after the first nine months of 2016. The registration also sat atop the high end of the government target of six to seven percent for 2016.
The impressive upshot of the country is driven by increased investments, which allowed it to become one of the fastest-growing nations in Asia. During the second quarter, augmented spending was brought by the election.
In October, a financial balance of P2.345 billion was posted, which is roughly a tenth of the deficit worth P27.022 billion in 2015. As government compensation dropped by seven percent from 2015, a gap valued at P75.327 billion was reported in September.
The P216.048 billion deficit was blocked off after ten months, which is more than thrice the 2015’s P52.574 billion level. Nonetheless, it is behind the aim of P246.576 billion.
Diokno stated that the recent administration is on the right route to reach the budget deficit equal to 2016’s 2.7 percent GDP, which is P388.87 billion. The deficit is more than two percent ceiling set by the previous administration in forging the national spending plan totaled to P3.002 trillion.