First Metro Investment Corporation, the investment banking arm of the Metrobank Group, expects that the Philippine economy will be the fastest to grow in the Association of the Southeast Asian Nations (ASEAN)-5 this year with as much as 7.5% growth. The ASEAN-5 include: Indonesia, Malaysia, the Philippines, Singapore, and Thailand‒these are the regional bloc’s top 5 economies.
This expectation is because of the continuous heightened private capital spending, rising government infrastructure spending, rebound in exports, revival in manufacturing, stable remittances from overseas Filipinos and tourism boom.
“All engines of growth are up and running at a faster place. The country’s economy will remain as the best performing in ASEAN,” said Rabboni Francis Arjonillo, President of the First Metro Investment Corporation.
As the Tax Reform for Acceleration and Inclusion (TRAIN) law is implemented, University of Asia and the Pacific (UA&P) economist Victor Abola said that the PhP 8 trillion government ambitious infrastructure program, Build Build Build, is expected to be on full steam. This infrastructure program is said to be partly funded by revenues from the country’s revamped tax codes.
“We’ve seen continued buildup of capital goods, imports, and private construction, which will remain strong because we have major PPP (public-private partnership) projects that are ongoing,” Abola said in the briefing.