A 6.9% GDP growth for the Philippines

T HE Philippines’ Gross Domestic Product (GDP) expanded by 6.9 percent in the third quarter (July-August-September) of this year, second only to Vietnam’s 7.5 percent, and better than China’s 6.8 percent and Indonesia’s 5.1 percent.

In the first quarter (January-February-March) of his year, our GDP was 6.4 percent, then rose in the second quarter (April-May-June) to 6.7 percent. The growth does not stop here, Secretary Ernesto M. Pernia of the National Economic and Development Authority (NEDA) said. Private consumption is now rising because of the coming holiday season. But the bigger reason for growth is the rising government spending.

We can expect a more riveting growth narrative in the fourth quarter (October-NovemberDecember) as the Duterte administration shifts to high gear on its “Build, Build, Build” infrastructure program. This will be the main driver of the economy, Finance Secretary Carlos Dominguez III said.

Among so many scheduled projects, work on the Tutuban-Malolos-Clark railroad project funded by China is expected to begin this December. This project, envisioned as early as the Ramos administration, was held up by disputes over legal issues for years. These were finally settled this month, Secretary Arthur Tugade of the Department of Transportation (DoTr) announced.

The rail project is one of 11 approved earlier this year. Among these are Mindanao Railroad Project, Cavite Industrial Area Flood Risk Management Project, Clark International Airport Expansion Project, Chico River Pump Irrigation Project, Unified Grand Central Station of three Metro Manila light rail lines, and Kaliwa Dam Project. Expected to be completed before the end of the year is the ₱10.5-billion North Luzon Expressway Harbor Link Segment 10.

Possibly the biggest single project is a ₱227-billion Mega Manila Subway connecting Quezon City, Mandaluyong, Pasig, and Taguig, to be built with Japanese technology and assistance.

All these projects are part of the Duterte administration’s three-year “Build, Build, Build” program from 2018 to 2020 at an expected cost of ₱3.6 trillion. The projects will provide employment, stimulate business activity, and construct the roads, bridges, dams, public utilities, airports and seaports, schools and other public buildings, that will provide the foundation for the further growth of the national economy in the future.

The 6.9 percent GDP growth in the third quarter is thus a herald of greater things to come, not just in the national economy, but also in the overall life of our country and our people.