Holiday spending boost to prop up PHL GDP growth

THE SEASONAL INCREASE in household spending amid the upcoming holiday season could help propel Philippine economic growth to reach the government's target, Department of Economy, Planning, and Development (EPDev) Secretary Arsenio M. Balisacan said.

- Aubrey Rose A. Inosante Reporter

Mr. Balisacan said faster growth in household final consumption, which accounts for over 70% of gross domestic product (GDP), can push economic growth to meet the 5.5% to 6.5% goal for this year.

“Household consumption should be enough because the inflation has continued to be low,” he told reporters on the sidelines ofan event on Thursday.

“Interest rates are also (low), and there are lagged effects from previous interest rate (cuts). I think in general, confidence is still there for consumers and businesses.”

Mr. Balisacan said the economy must grow by 5.6% in the second half to meet the low end of the full-year target and by 7.5% to hit the upper end.

DEPDev Undersecretary Rosemarie G. Edillon also told Business World on the sidelines of a House briefing on Wednesday that the holiday-driven boost in private spending could bring GDP growth to the lower end or middle of the 5.5% to 6.5% target.