The Asian Development Bank (ADB) has projected that the Philippines gross domestic product (GDP) growth will settle at 6.0 percent for 2016 and at 6.1 percent in 2017.
Based on its Asian Development Outlook (ADO) 2016 launched here on Wednesday, private consumption will remain the main growth driver for the country this year. However, the pace of increase is seen to moderate.
“Rising employment, higher government salaries, modest inflation, and remittances inflows all point to robust consumer spending,” the ADB said.
“Moving forward, the pickup in government spending that began in 2015 should accelerate this year, lifted in part by spending ahead of May 2016 elections,” it added.
The GDP growth forecast for the Philippines is higher than the projected growth for the region at 5.7 percent both this year and next year.
The ADO is ADB’s flagship annual economic publication for the region.