More investments needed to push growth back up — DOF
Second-quarter economic growth has been disappointing at 6 percent, well below the government’s expectations and target.
However, the Department of Finance does not think all hope is lost, as there is still scope to support further expansion.
“Government is keeping its eye on the bigger picture, that is, that growth, if it is to remain sustainably high, should be driven by investment. Public construction has accelerated to 22.1% in 2018S1, more than double the 2017S1 growth of 9.3%. Private construction is also picking up,” the agency said in its economic bulletin.
“Government should keep its focus on enhancing the country’s long-term prospects by increasing the economy’s productive capacity (through infrastructure and social services) while maintaining macroeconomic stability.”
Inflation has been eating up real GDP expansion, but growth could still remain brisk.