Summary:

Rising domestic and external demand helped place the Philippines as one of Asia’s
best-performing economies in 2017, with many key sectors posting high levels of
growth.

Driven in part by a rise in exports, as well as strong domestic consumption and public
sector investment, the economy continued to sustain the high rates of growth seen last
year, expanding by 6.4% and 6.7% in the first and second quarter, respectively, before
accelerating to 6.9% in the third quarter, according to official data.
mid-November, Ernesto Pernia, the secretary of socio-economic planning, said the
government was confident GDP growth would reach the forecast year-end target of
between 6.5% and 7.5%, with year-to-date expansion running at 6.7%.While this falls
slightly short of last year’s growth, which stood at 6.8% for the year and 7.1% in the
third quarter, Pernia said the Philippines’ remains one of the top-performing Asian
economies, second to Vietnam (7.5%) and ahead of China (6.8%).

Industry, services and construction among strong performers

Overall growth was driven by strong performances in some of the Philippines’ key
sectors. Services and industrial sector are expanded. Growth in construction totalled
6.5% over the first three quarters of 2017. But this was down on the 14.9% expansion
recorded over the same period in 2016.

Another key component of the economy, the business process outsourcing (BPO)
sector, maintained a steady flow of investment, though the capital stream was tempered
by caution External factors also had a negative impact on agriculture this year. Through
weather conditions saw this rate fall to just 2.5% in quarter three, and expectations are
that growth in the last three months of the year will also be affected.
 Rates, inflation hold steady

The economy’s strong showing throughout 2017 has been supported by the relatively
low cost of funds. Maintaining its accommodative lending rates, the BSP may look to
marginally tighten monetary policy in the new year, having flagged a modest increase of
inflation in its forecast for 2018.The country’s year-end inflation expectations are steady
at 3.2%, while the bank expects prices to rise by 3.4% next year, with higher energy
prices tipped to put upward pressure on the consumer price index.

ASEAN chair leads to new business agreements, tax reforms stimulate spending

Another key economic development was the proposed overhaul of the tax system. The
Tax Reform for Acceleration and Inclusion (TRAIN) looks likely to come into force in
2018. The widening of the scope of VAT may impact inflation in the shorter term, the
tax breaks on offer for many low- and middle-income earners could further stimulate
domestic spending, supporting economic growth after the initial effects of higher goods
and services levies have been assimilated.

These tax changes, along with strong private sector activity, and government plans to
increase infrastructure and development spending, are expected to contribute to further
growth, with the BSP forecasting GDP will expand by 7% to 8% per annum through to
2022.
Reflection:

Philippines as one of Asia’s best-performing economies nowadays, I can see that

current leaders or the president specially do a lot of things in crossing the bridge
towards the betterment of our country. It is overwhelming to hear that our economy
sustain the high rates of growth yet we can’t deny that there are still family that belongs
to a low class in our country.

Industry, services, and construction are the strong performers of an overall growth
according to Ernesto Pernia, the secretary of socio-economic planning. They are the
key sectors for high rate of employment. Hence, I will wish to lessen the number of
countrymen aiming to work abroad for I do believe it’s not easy for them to be far from
their families.

At last Philippines was given a further boost in terms of development and

Improvement. It is nice to uphold and to treasure such great scenario.

Moscosa, Gecil C.

BEEd 2
Philippines: Year in Review 2017

PhilippinesEconomy
Economic News
27 Dec 2017
Recommend

Rising domestic and external demand helped place the Philippines as one of
Asia’s best-performing economies in 2017, with many key sectors posting high levels of
growth.

Driven in part by a rise in exports, as well as strong domestic consumption and

public sector investment, the economy continued to sustain the high rates of
growth seen last year, expanding by 6.4% and 6.7% in the first and second quarter,
respectively, before accelerating to 6.9% in the third quarter, according to official
data.
At a media briefing in mid-November, Ernesto Pernia, the secretary of socio-
economic planning, said the government was confident GDP growth would reach the
forecast year-end target of between 6.5% and 7.5%, with year-to-date expansion
running at 6.7%.

While this falls slightly short of last year’s growth, which stood at 6.8% for the
year and 7.1% in the third quarter, Pernia said the Philippines’ remains one of the top-
performing Asian economies, second to Vietnam (7.5%) and ahead of China (6.8%).

Industry, services and construction among strong performers

Overall growth was driven by strong performances in some of the Philippines’

key sectors.
 Services, which accounts for more than 50% of GDP, saw its rate of growth
mirror that of the broader economy, expanding by an average of 6.7% over the first nine
months of