Infrastructure Projects Hope to Boost Manufacturing Sector
The infrastructure program of the government in 2021 hopes to partly boost the manufacturing sector in the Philippines, as well as look at the concerns in economic activities and domestic growth.
According to Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort, this program with around P1 trillion annually from 2016-2022, hopes to support the expansion of the Markit Manufacturing Purchasing Managers Index (PMI) to 52.5.
He said that in spite of the pandemic, PMI last December was the highest as compared to December 2018.
“(This is) a leading indicator that could suggest a further pick-up in business/economic activities even after the Christmas season in December 2020,” he added. “For the coming months of 2021, increased infrastructure spending, as part of the priorities of the economic recovery program, would benefit contractors and manufacturing industries that are part of the supply chain/value chain. The government’s infrastructure spending is also expected to boost economic activities, especially in rural areas, “given (the) high multiplier effects on real estate/property and in many other related/allied industries,” he said.
This growth will also impact the eventual availability of COVID vaccines, the re-opening of the domestic economy, and the impact of monetary easing.