Consumption is expected to remain strong, supported by remittances, tamer inflation, and better employment situation. The timely passage of the P4.1-trillion national budget for 2020 will support the government’s drive for higher investments in infrastructure and social services. In turn, this may help encourage the private sector to follow through, particularly by investing more in public-private partnership projects and other capital investments.
To keep this core rate of inflation steady near 2%, some deceleration in economic expansion or a more rapid increase in productivity and production capacity will be required during 2001. When it comes to the production capacity of the economy, there is currently even more uncertainty than usual.