The Philippines is expected to become the fastest growing economy this year among countries in the Association of Southeast Asian Nations (ASEAN)-5, according to First Metro Investment Corporation, the investment banking arm of Metrobank Group.
According to First Metro president Rabboni Francis Arjonillo, the Philippines gross domestic product (GDP) is expected increase from 7% to 7.5% this 2018. This may be attributed to the heightened private capital spending, rising government infrastructure spending, revival in manufacturing, rebound in exports, tourism boost, and stable remittances from OFWs.
The ASEAN-5 is composed of the Philippines, Malaysia, Singapore, Thailand, and Indonesia.
“All engines of growth are up and running at a faster pace. The country’s economy will remain as the best performing in ASEAN,” Arjonillo said in a briefing in Makati City.
Meanwhile, the country’s inflation rate is expected to increase from 3.5% to 4% in 2018, with the 0.6 percent accounted to the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law.