2018 growth likely hit target – Diokno
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Wed, 16 Jan 2019 16:20:40 +0000
Economic growth likely hit the lower end of the government’s downwardly revised target last year, a Cabinet official said on Wednesday.
“The economy is projected to have grown by at least 6.5 percent in 2018,” Budget Secretary Benjamin Diokno said in a briefing.
Economic managers cut the 2018 domestic product growth (GDP) goal to 6.5-6.9 percent in October, from 7.0-8.0 percent previously, as inflation breached targets and the peso weakened, among other factors.
Based on latest official data, GDP growth was running below target as of end-September, averaging 6.3 percent following first to third quarter outturns of 6.6 percent, 6.2 percent and 6.1 percent, respectively.
Growth should have accelerated to 7.1 percent in the last three months of the year for Diokno’s 6.5-percent estimate to be achieved.
The Philippine Statistics Authority is scheduled to release fourth quarter and full-year results on January 24.
Growth in 2017 was 6.7 percent, near the lower end of the 6.5-7.5 percent target.
The expected growth, Diokno claimed, was supported by heavy government investments in infrastructure via the “Build Build Build” program as well as spending on human capital.
State spending for infrastructure and capital outlays totaled P62.9 billion in November, up 43.6 percent from the P43.8 billion recorded a year earlier.
November’s expenditures brought infrastructure and capital spending to P728.1 billion in the first 11 months of 2018, 49.7 percent higher year on year.
Diokno has said that the “Build Build Build” program was in full swing with 44 out of 75 flagship projects already being implemented.
In other developments, the Budget chief said the government posted P10.7 billion worth of procurement savings in 2018 due to reforms and the upgrade of the Philippine Government Electronic Procurement System or PhilGEPS portal.
Procurement data showed a total of 446 contracts worth P175.8 billion were awarded last year, he added.
The Cabinet official pointed out that in 2016 and 2017, savings earned totaled P3.74 billion and P3.2 billion, respectively.
“The improved procurement performance is a direct result of reforms, which seek to ensure a faster, efficient, and more responsive mechanisms for the acquisition of goods and services, introduced by the administration in the past two years,” Diokno said.
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