The “dizzying pace” of the country’s infrastructure spending for the third quarter will boost gross domestic product (GDP) growth to above 7 percent again for the third quarter of the year, according to The Market Call.
The Market Call, which is published by First Metro Investments Corp. and the University of Asia and the Pacific, said that the Philippine economy is projected to grow by 7 percent, and attributed that to improved infrastructure spending and increase in tax revenues.
“We remain on track with our outlook of another above 7-percent GDP growth for third quarter,” The Market Call.
“The third quarter was also off to a fast start as the national government resumed the dizzying pace of infrastructure spending, which rose by 45.1 percent in July. The economy’s health may also be reflected by the 18.5-percent increase in tax revenues for the same month,” it added.
The Philippines has been posting the fastest growth for the year—growing more rapidly among other countries around the world, side by side with China’s expansion—going up 7.8 percent in the first quarter and 7.5 percent in the second quarter.
The Market Call said that the rise of the manufacturing and services sectors is seen fueling third-quarter GDP growth.
“The growth was broad-based and diversified with industry surging ahead by 10.3 percent and services by 7.4 percent. This marks the fourth consecutive quarter that GDP growth has exceeded 7 percent, and the sixth uninterrupted quarter of above 6-percent gains,” it added, referring to the country’s second-quarter economic growth.