Financial firm Sun Life Financial Philippines projected that the gross domestic product (GDP) of emerging economies, including the Philippines, will decline next year, as it will be the time of the economies of United States and Europe time to shine.
Michael Gerard Enriquez, chief investments officer of Sun Life Financial, told reporters in a press briefing that the country’s 2014 GDP could dwell at 6 percent to 6.5 percent, or below the above 7-percent growth forecast of economists and organizations prior to Super Typhoon Yolanda hitting the Philippines.
“There are no more election [spending], DAP [Disbursement Acceleration Program] and PDAF [Priority Development Assistance Fund concerns],” Enriquez said, referring to the rise of the year’s quarterly GDP from the aforementioned factors.
He also forecasted that the country’s economic performance for the fourth quarter of the year could be between 5 percent and 5.5 percent, as opposed to the 4-percent forecast of some entities, mainly influenced by the destruction and labor subtraction brought by Yolanda.
Enriquez also said that increased construction activities in the Visayas because of the rebuilding and reconstruction efforts “can help sustain the GDP next year.”
Other than Yolanda rebuilding efforts, the healthy financial landscape and strong fundamentals would keep the country’s economy afloat despite emerging markets going down next year.
But Enriquez mentioned that with the weakening of the peso to P44 a dollar, the contribution of overseas Filipino workers’ remittances and the business process outsourcing industry to the Philippine economy will increase.