1. Market Research

Country Economic Forecasts > Philippines

  • September 2017
  • 14 pages
  • Oxford Economics
Report ID: 2026769

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Notwithstanding the notoriety surrounding the 2018 budget deliberations (in particular the initial slashing of the commission on human rights' budget), the proposed budget of PHP 3.77 trn is 12.4% higher than 2017, with a third allotted to the government's infrastructure programme. Despite this, we expect the fiscal deficit to stay within the 3% of GDP cap but there are downside risks from potential shortfalls in revenue or if the tax reform package turns out to be less than revenue-neutral. However, it should mean that government spending supports growth well into 2018, in addition to robust consumer spending and a smaller drag from trade. Growth of more than 6% is expected in 2017 and 2018.

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