Yolanda reconstruction to fuel PH growth in 2014
MANILA, Philippines – The government is confident it can achieve its economic growth target for 2014 due in part to ongoing reconstruction efforts in areas devastated by Typhoon Yolanda (Haiyan).
National Economic and Development Authority (NEDA) Assistant Director-General Rosemarie Edillon told reporters a robust construction sector will help the government reach its 6.5% to 7.5% gross domestic product (GDP) growth target this year.
Edillon explained that the construction of some one million homes for Yolanda victims will propel demand for housing-related goods and services.
"Even without PPPs (Public-Private Partnership) projects for 2014, we can still achieve the growth target," she said.
Yolanda struck the Visayas on November 8, leaving more than 6,000 people dead and almost 900,000 homeless. The government earmarked P360.9 billion ($8.17 billion) for the rehabilitation of the affected areas over a 4-year period. Of the total amount, 50.79% or P183.3 billion will be used to build shelter and resettlement.
"I met with SME (Small and medium entreprise) Roving Academy last December and told them to come up with new product designs. With at least a million houses to be constructed, that’s a big market [for them]," Edillion said.
APEC Summit 2015
Also buoying the construction sector are preparations for the 23rd Asia-Pacific Economic Cooperation Summit in 2015. The Philippines will host the summit.
"This will also increase infrastructure spending this 2014," Edillion stressed.
The government also released P250 million for the redevelopment of Roxas Boulevard. The funds will be used to improve the service road, parking areas and lighting of the 8-lane road.
The construction sector posted a growth of 16.3% in the first 9 months of 2013, faster than the 10.5% recorded in the same period of 2012. The growth was mainly attributed to public construction, which grew 31.8%, slower than the 37% recorded in 2012. – Rappler.com