President-elect Rodrigo Duterte takes a selfie with members of his Cabinet after their first formal meeting in Davao, Tuesday evening. Duterte presented to the media for the first time the members of his Cabinet, whom he called “men of honesty and integrity.”(MNS photo)
MANILA, June 2 (Mabuhay) – The economy could grow up to 6.6 percent this year, below the outgoing government’s target, President-elect Rodrigo Duterte’s incoming socioeconomic planning secretary said Thursday.
Duterte, who will take over from President Benigno Aquino on June 30, may not have enough leeway in the remainder of the year to steer growth higher, University of the Philippines economics professor Ernesto Pernia said.
Gross Domestic Product (GDP) grew 6.9 percent in the January to March period, outpacing China and beating analysts’ forecasts on election-driven demand and growing investments. Aquino’s economic team sees full-year growth at 6.8 to 7.8 percent.
On Wednesday, incoming budget secretary Benjamin Diokno said GDP could grow 6.2 percent this year with election and infrastructure spending expected to taper off in the second half.
Pernia said full-year growth could be “6.5, maybe 6.6 percent, in that neighborhood.”
“That’s because half the year is over by the time we come in, and I don’t know how much we can push it higher; but I think it’s probably going to be a bit higher than 6.2. I would think it would be approaching 7 percent,” he said.
Pernia said Duterte’s economic team would work to sustain growth and bridge the “huge growth deficit” between the Philippines and its Southeast Asian peers.
Pernia said Duterte would fast-track infrastructure development. Bidding out such projects to private sector builders, he said, should not be an income-generating venture for the government. (MNS)