ASEAN KEY DESTINATIONS
Bigger FDI inflows seen alongside faster economy
But, with the improvement in confidence, generally after the election, the continued global economic recovery and the sustained macroeconomic stability in the Philippines, I think we should see an increase in FDI,” Bangko Sentral ng Pilipinas (BSP) Gov. Amando Tetangco Jr. said.
He said the overall positive sentiment will add force to the government’s plan to increase spending for infrastructure through private-public partnerships (PPP), among other possible ways of attracting funds that will result in investments inflows.
“They will reinforce . . . Meaning investment leads to growth, economic growth also encourages investments,” the BSP chief said.
Philippine economic managers are confident that investments would contribute to faster economic growth next year amid expectations that FDI this year would hit the government target.
The National Economic and Development Authority had said that investment would come “closer to the savings rate of around 18 percent” of gross domestic product (GDP) next year despite a cut in government’s infrastructure spending for 2011.
An indicator of economic performance, GDP represents the amount of final goods and services produced locally.
The investment-to-GDP ratio either will stay the same or be reduced slightly, NEDA said, adding that private sector participation will fill the gap through the government’s PPP initiative.
Tetangco said President Benigno Aquino 3rd’s focus on PPP will be a big boost to the country’s FDI.
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