Cebu business heads expect GDP growth in 4th quarter of 2016

Mandaue Chamber of Commerce and Industry president Glenn Anthony Soco

BUSINESS leaders in Cebu anticipated a good performance from the Philippine economy in the last quarter of 2016, ahead of the release of fourth-quarter domestic economic data this week.

Mandaue Chamber of Commerce and Industry (MCCI) president Glenn Soco said Gross Domestic Product (GDP) during the period would have grown further to at least 7.2 percent, up from 7.1 percent in the third quarter of last year as well as 6.3 percent in the fourth quarter of 2015.

“This will be consistent to the momentum that has been established,” he said in a text message to Cebu Daily News on Tuesday.

The Duterte administration, through the Philippine Statistics Authority (PSA), was expected to release the 2016 fourth quarter GDP data on Thursday.

Soco said there was now community and investor confidence brought about by the improved peace order situation, as well as stability in interest rates, increase in consumer spending, and more foreign direct investments.

For her part, Cebu Chamber of Commerce and Industry (CCCI) president Melanie Ng said she also expected an increase in the GDP considering how upbeat the market is and that the economy was growing.

She said it was during the last few months of the year that the Duterte administration secured new trading relationships.

“We are hopeful that with the economic activities taken by our current administration, we’ll see more trading that will translate to growth across all sectors,” she said in an earlier interview.

Apolinar Suarez, Jr., chairman of the Philippine Exporters Confederation (Philexport) in Cebu, said their group projected a 1.2-percent growth quarter-on-quarter, which also translates to about a year-on-year growth of about 7.2 percent as well.

“Generally, I think (the latest economic performance) would be good. This was driven by increased spending during the Christmas season as well as other economic activities, which are many during the last quarter of the year,” he explained in a phone interview.