GDP growth seen at 6.8% in 2018
MANILA (Philippines News Agency) — An economist expects the country’s Gross Domestic Product (GDP) growing by 6.8 percent this year, fueled by rising infrastructure investments and the implementation of the tax reform law.
“The golden age spending could finally kick in, we expect growth close to 7 percent this year,” said Emilio Neri Jr., lead economist at the Bank of the Philippine Islands (BPI), during an economic briefing Tuesday.
Neri said the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law is a “very important element” of his growth assumption this year.
TRAIN is the first package of the government’s comprehensive tax reform program (CTRP) which is seen to generate additional revenue to fund the country’s investment requirements.
“We expect it to be successful in many ways,” Neri said, as he also looks forward to continuing improvement in tax administration.
He said the country’s inflation rate, however, rose last month resulting from the implementation of the tax reform law.
“Tax cut (under TRAIN law is) seen to compensate for price increase. Additional disposable income allows consumers to decide where to spend it,” he added.
The government targets the economy accelerating 7 to 8 percent from 2018 to 2022, after last year’s growth of 6.7 percent. (PNA)