· The economy grew by 6.6% in the last quarter of 2017, mirroring that of the same quarter in 2016. For the year, the economy grew by 6.7%, slightly slower than the election spending-boosted growth of 6.9% the prior year.
· From the demand side, the surge in exports tempered the slowdown in consumption and investment. Implementation of infrastructure projects is showing progress as evident in the 25% increase in public construction activities, twice that in Q3.
· From the supply side, the continued recovery in the agriculture sector and the sustained growth of manufacturing activities cushioned the deceleration in both services and industry.
DOF View
· Strong macro-economic fundamentals such as manageable inflation, strong external stance, and ample fiscal space will continue to sustain the momentum for high growth. The passage of the first package of tax reforms will bring in additional resources to fund the ambitious infrastructure plans and greater spending on social services. These investments are game-changing in the sense that they catalyze further investments, which, in turn drive investment-led growth, generate meaningful employment, and subsequently, reduce poverty.
· With the implementation of infrastructure projects, the motion is set for investment-led growth.
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