ECONOMIC growth will likely fall below government expectations this year, despite massive spending on public infrastructure, with analysts forecasting expansion in the range of 6.3 – 6.8 percent for a median of 6.6 percent, lower than the 7 – 8 percent target. “[W]hile different measures of the output gap yield varying results … our work on looking at investment rates and working-age population growth implies potential real GDP growth in the Philippines likely between 6 percent and 6.5 percent,” UBS said. Year-to-date growth of 6.7 percent has kept the country on track to hitting the 6.5- to 7.5-percent target for 2017. With its 6.7-percent growth forecast, banking giant HSBC said the Philippines remained on solid ground as one of Asia’s growth leaders. “We also expect to spend more on infrastructure development to help improve regional connectivity and ease the cost of doing business in the country.”

Source: Manila Times December 31, 2017 17:15 UTC