Philippines Economic Outlook
June 21, 2016
The Philippine economy picked up pace in Q1 and recorded the fastest expansion in nearly three years. The acceleration was mainly driven by upticks in fixed investment and private consumption, while the external sector continued to be a drag on growth. Recent indicators suggest that the economy remained on solid footing in Q2: in April, remittances rebounded and the contraction in exports softened. In the political landscape, official results confirm that the controversial presidential candidate Rodrigo Duterte won the elections with Leni Robredo as vice president. They will take office on 30 June. Duterte’s cabinet appointments comprise people from his inner circle, such as Carlos Dominguez III as finance secretary, but there are also some academics and technocrats, including Benjamin Diokno as budget secretary. Duterte, who pledged continuity in economic policies, signaled that he plans to cut personal and corporate taxes and to increase borrowing in order to boost infrastructure development and economic growth.