Policies and priorities on utilities, infrastructure and agriculture of the administration of President Ferdinand Marcos Jr. are expected to further boost economic growth this year, a veteran economist said yesterday.

“My assessment is that overall, I think (President) BBM (Bongbong Marcos) has performed well,” University of Asia and the Pacific economist Victor Abola said in a briefing in Makati on Thursday.

“For water, we are fortunate that the Kaliwa Dam construction is going on and gaining traction,” he added.

The New Centennial Water Source-Kaliwa Dam Project, which is expected to be fully operational by 2027, is projected to generate 600 million liters of water per day.

Aside from water, Abola said the Marcos administration is also ramping up infrastructure spending.

“Infrastructure spending is, and will continue to be, 5 percent of GDP (gross domestic product) during this year. Now, take note that infrastructure spending and when done by the private sector, that is PPP (Public-Private Partnership) basis, is not included under public construction,” he said. “So the 5 percent is like the minimum. And we have, you see, some of the projects that are very large under PPP.”

Abola said that in terms of agriculture, the Marcos administration, through the Department of Agriculture and National Irrigation Administration, are already ramping up efforts to rebuild irrigation systems and ensure stable rice supply.

“I think that PBBM is generally positive for the economic growth of the country,” he said.

For this year, Abola and the First Metro Investment Corporation expect Philippine economic growth to accelerate to 6 percent driven by robust consumption, increased government infrastructure spending, strong labor market and recovery of domestic tourism.

Prices stay stable

Abola said inflation is also expected to ease to 3.8 percent this year, aligned with the BSP’s target range of 2 to 4 percent which will bring the much-needed respite for household income.

The peso, however, will remain under pressure due to persistent uncertainties on when and by how much the Fed will cut policy rates.

It is projected to trade within the P56 to P58 range against the US dollar.

Following a cumulative 100-basis point, or bps,increase in policy rates over the past year, interest rates are anticipated to decline underpinned by a decrease in inflationary pressure.

Abola said the Bangko Sentral ng Pilipinas will likely cut rates by 25 basis points starting in June this year.