A JAPANESE investment bank said it sees infrastructure spending in the Philippines picking up this year.
Nomura senior economist Euben Paracuelles said bottlenecks from the transition to a new administration have passed.
But he notes the need to sustain improved spending on public works is likely to widen the government’s budget deficit and pose a challenge to its fiscal consolidation efforts.
The Philippines’ lackluster growth in the first quarter of 2023 was mainly attributed to lower state spending on infrastructure.
The Philippine economy grew 5.6 percent in 2023, missing the government target of 6 to 7 percent.
On the demand side, household final consumption grew year-on-year by 5.3 percent in the fourth quarter of 2023. Gross capital formation rose by 11.2 percent, but government expenses declined by 1.8 percent. (ABS-CBN News)
