The Philippine economy is expected to pick up pace in the first quarter of the year, driven largely by increased government spending on infrastructure projects. A report from the First Metro Investment Corporation (FMIC) and the University of Asia and the Pacific (UA&P) indicates that the country’s gross domestic product (GDP) is forecasted to grow by 6.1 percent during this period.
According to the latest issue of The Market Call, released on Monday, FMIC and UA&P anticipate a boost in economic activity in 2024, particularly in the first quarter, as infrastructure projects gain momentum. The report highlights the significant role of the national government (NG) in driving this growth, with a particular focus on official development assistance (ODA) funding and public-private partnership (PPP) projects.
FMIC and UA&P also predict a surge in NG and infrastructure spending throughout the year. They note that the NG is expected to start the year strong, building on the momentum from the previous year when the new administration was still getting organized. The report emphasizes the acceleration of infrastructure spending, including both government-funded projects such as the substantial PHP1.0-trillion Department of Public Works and Highways budget and PPP projects like the recent $3.0-billion Ninoy Aquino International Airport (NAIA) expansion.
Regarding inflation, which rose to 3.4 percent in February, FMIC and UA&P expect it to remain within the government’s target range of 2 to 4 percent for the year. They attribute this outlook to easing rice prices and stable crude oil prices, driven by a weak economic recovery in China and surplus capacity in oil-producing countries.
FMIC and UA&P project headline inflation to stabilize at 3.7 percent in the first half of the year before easing to 3.5 percent in the third quarter.
Source: Philippines News Agency