Economist urges infrastracture boom for PH
by FFE PH News staff
The Ayala triangle in Makati City.
After a series of investment rating upgrades and praise for being Asia’s growth leader, the Philippine economy is at its peak condition. However, the country may slip out of the limelight if infrastructure continues to move at a snail’s pace.
Economist Emilio Neri Jr. remarked that the country’s status as an investment darling is questionable since investments in long-term gains are lagging. He emphasised the need for world-class infrastructure that will attract more investors in the country.
He said ‘The Philippines, with its blistering growth, is seen to dominate the opening rounds but its apparent lack of world-class infrastructure, coupled with the snail-paced improvements in capacity building may hamper its long-term prospects.
‘Despite recent fame, growth remains heavily dependent on consumption and investment linked-to-consumption, while being predominantly in the services sector.’
Neri added that the country still needs more reforms that will sustain the growth the economy is experiencing.
‘The Philippines has seen robust growth on the back of consumption, but gross domestic capital formation is still one of the lowest in the region, and is one-dimensional as it remains largely in the usual suspects of real estate and malls.’