The thrive of infrastructure developments left and right is one of the factors that led the Asian Development Bank (ADB) to raise its GDP growth prediction for the Philippines for 2017 and 2018.
The forecast for the GDP’s advancement has now been elevated to 6.7 percent for the current year from the earlier 6.5 percent which was announced in September, the financial institution revealed in its Asian Development Outlook 2017 supplement.
For 2018, the outlook is a 6.8 percent growth in GDP from the previously forecasted 6.7 percent.
The ADB attributes this expected percentage of expansion to a number of factors, including the upturn of infrastructure projects being carried out in the country under the current administration’s Build, Build, Build initiative.
“This outlook assumes that growth in the government’s infrastructure program will accelerate, supported by improvements in budget execution, with more large investment projects under way”, voiced the bank.
Expenditure on public needs, specifically infrastructure, was noted to have increased, thus “the government is on track to achieve its target of spending 5.3 percent of GDP on public infrastructure this year” according to the ADB.
Investment on infrastructure development positively affected the GDP growth forecasts for neighboring countries Indonesia and Thailand as well.
Other elements cited to have greatly contributed to the progress were household consumption, positive net exports, services supplied by the trade, BPO, finance, and real estate industries.
The manufacturing and agriculture sectors have also been noted as key players in the GDP’s expansion.