Based on Malaysia’s RAM Rating Services Berhad, the Philippines is expected to experience a 6.7 percent economic growth this year. Although, their economic growth prediction is lower compared to the 6.9 growth witnessed a year before. Fortunately, it still lies within the goal of the Cabinet-level Development Budget Coordination Committee of 6.5 to 7.5 percent.

1. Philippine Economy
Witnessed a 6.7 Percent
Growth this Year
Land Estimate

2. Based on Malaysia’s RAM Rating Services Berhad, the Philippines is expected to
experience a 6.7 percent economic growth this year. Although, their economic growth
prediction is lower compared to the 6.9 growth witnessed a year before. Fortunately, it
still lies within the goal of the Cabinet-level Development Budget Coordination
Committee of 6.5 to 7.5 percent.
The Cause of Growth
Following China, this nation is the second quickest rising economy in Asia. RAM Rating
even reveals that the domestic growth fundamentals of the country are still steady,
which is maintained by the boost in the manufacturing field and remittance influxes.
They even stated that the external field’s rebound is seeping into domestic
manufacturing. Industrial production is rising and manufacturing enterprises’ capacity
utilization rates are a record high.
Meanwhile, the Kuala Lumpur based company added that the merchandise exports’
rebound wasn’t sufficient to balance the high amounts of capital and consumer imports.
Nevertheless, they revealed that the services sector continues to be the primary driver
of growth, prompted mostly by real estate, BPO, trade and finance.

3. The Impact of Construction
With the launching of the Build Build Build program by the Duterte Administration comes
a great future for the construction sector. This program included the government’s
commitment to dedicate nearly PHP 8 trillion. The administration aims to raise the
portion of infrastructure expenditure to gross domestic product from 5.3 percent this
year to 7.4 percent by 2022.
Undeniably, they do expect to face some problems that could occur from cost overruns
or postponements in implementation. Nonetheless, they still anticipate the GDP growth
to maintain at 6.7 percent this year, which is on the lower end of their 6.5 to 7.5
percent estimate.
According to Eugenia Fabon Victorino, an ANZ economist, the progressive growth
denotes that the economy of the Philippines is gaining momentum.

4. Sources:
http://landestimate.com.ph
http://www.philstar.com/business/2017/09/20/1740678/economy-seen-growing-6.7-
year
https://www.reuters.com/article/us-philippines-economy-gdp/philippines-second-
quarter-gdp-growth-quickens-on-construction-boom-drugs-war-poses-risk-
idUSKCN1AX05P