Macroeconomic Forecast Philippines

We are forecasting a 4.4% expansion in the Philippine economy for 2010, considerably faster than the 0.9% growth recorded in 2009. Indeed, we expect robust remittance inflows to remain a key contributor. Moreover, we foresee that government spending will rise to maintain the pace of economic recovery, where the fiscal deficit is expected to reach PHP1.50trn (US$32.9bn) in 2010, from PHP1.42trn last year. Notably, 32.1% of total planned spending has been allocated for the upward revision of salaries of civil servants, which will have a strong impact on private consumption.

To read the full article, please choose one of the following options: