MANILA -- Oxford Business Group (OBG), a global research and consultancy firm, backed forecasts of heightened economic activity in the Philippines in the medium-term as government's ambitious infrastructure program goes into high gear.
The Build, Build, Build Program of the Duterte administration is the highlight of OBG’s The Report: The Philippines 2018
“The administration’s goals of making infrastructure development a top priority and ensuring that future economic growth is both sustainable and more inclusive are already generating a raft of new opportunities nationwide, as our coverage of the country’s emerging cities shows,” OBG editor in chief Oliver Cornock said.
“With a diverse range of funding options to finance the project pipeline now being pursued, the Philippines should be able to look forward to a period of heightened economic activity in the medium term,” Cornock added.
The OBG report also noted the shifting financing strategy of the government, which now favors tapping overseas development assistance (ODA) and international borrowings than public-private partnership (PPP).
“Although PPPs will remain an important tool for project development, the have been criticized for experiencing significant delays,” the OBG report read.
“A new strategy is set to emphasize so-called hybrid PPPs -- which aim to fast-track infrastructure projects -- and unsolicited proposals for smaller PPP projects, while boosting overseas development assistance and international debt markets for big-ticket projects,” it added.
Moreover, OBG Regional Editor for Asia Patrick Cooke mentioned that aside from the boost in infrastructure projects, the manufacturing, services, and trade sectors provide firm foundations for the future expansion of the Philippine economy.
“While our report highlights the issues that remain a challenge for business leaders, such as uncertainty over tax reforms and the need to improve supply chains, core segments of the manufacturing industry continue to deliver strong performances, despite intense regional competition and unhelpful trade disputes between the world’s leading economic powers,” said Cooke.
OBG’s outlook for the Philippine economy remains bright despite global challenges and risks such as geopolitical volatility, potential Sino-America trade war, and further tightening of policy of the United States Federal Reserve System.
“With growth in the first quarter of 2018 having reached 6.8 percent, on a par with China and behind only Vietnam in the region, the Philippines has much to feel positive about,” he added.
In fact, in OBG’s Philippines CEO Survey conducted in June 2017 to April 2018, 92 percent of the surveyed top business executives said they have positive or very positive outlook for local business conditions over the next 12 months. (PNA)
