Fitch-owned think tank BMI Research is upgrading its Philippine economic forecast based on the perception of strong growth potentials under the Duterte administration.
In a report entitled “Philippines: Outperformance Ahead,” BMI Research raised the gross domestic product (GDP) growth projections for the Philippines to 6.9 percent from 6 percent in 2016, and 6.3 percent from 5.8 percent next year.
“The Philippine economy surged by 7 percent in second quarter 2016; we expect the archipelago’s outperformance to continue over the coming quarters on the back of a solid government policy agenda and ongoing booms in the construction and services sector,” BMI Research said.
Aside from his war on drugs and the promise of peace and order, the Duterte administration’s 10-point economic agenda uplifted the sentiment of the business community. It focuses on improving infrastructure spending, ease of doing business, internet and telecoms services, traffic management, and support for farmers and agribusiness firms, among others.
The country 100-million strong population with a young demographic profile and above-average education levels are contributing toward growth, particularly in manufacturing and service exports.
“The Philippines will be something of a regional outperformer in terms of growth relative to other countries with similar per capita incomes,” BMI Research said.