DTI sees continued growth of economy

MANILA, Philippines - The Department of Trade and Industry (DTI) expects the economy to continue to post strong growth at least for the next two years as  firms open new plants and even look to expand, and given work on infrastructure projects.

“Our high growth rate should be sustained for at least the next two years as the numerous new plants and expansions being built now start operations,” DTI Secretary Gregory Domingo said in a text message yesterday.

The National Statistical Coordination Board reported yesterday that the economy grew 7.1 percent in the third quarter, beating expectations and making the Philippines the fastest growing economy in the Southeast Asian region.

The third quarter gross domestic product growth brought the nine-month expansion to 6.5 percent.

Domingo said the new plants being put up in the country and expansion plans being announced by manufacturing firms in the country are expected to help support the economy’s growth in the coming years.

Many foreign firms are choosing to set-up plants or expand their existing operations here given the availability of a skilled workforce and low labor costs as compared to other countries.

An improving business climate and confidence in the government is likewise leading firms to locate here or expand.

Domingo said that apart from new plants being set-up by firms in the country, work on infrastructure projects is likewise expected to support strong growth in the coming years.

The government is rolling out infrastructure projects under its public-private partnership program as it seeks to achieve higher economic growth.

Meanwhile, Makati Business Club executive director Peter Perfecto said in a text message yesterday the business community welcomes the good news.

“MBC and the larger business community welcomes the positive development for the Philippine economy despite continuing global challenges,” he said.

“Good governance is paying off. President Aquino and his economic team must be lauded,” he said further.