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Infrastructure likely to remain at 'forefront' under Marcos admin: Fitch Solutions

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ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="Workers are seen on top of a construction site in Pasig City on May 27, 2022. George Calvelo, ABS-CBN News" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2022/business/06/09/20220527-business-economy-dailies-gc-8.jpg"/><figcaption>Workers are seen on top of a construction site in Pasig City on May 27, 2022. <em>George Calvelo, ABS-CBN News</em></figcaption></figure></div><p>MANILA - Fitch Solutions Inc said on Thursday that the incoming administration of President-elect Ferdinand Bongbong Marcos Jr is likely to focus on infrastructure.</p><p>Transport projects are also seen to remain key drivers of infrastructure development in the coming years, Fitch Solutions said, citing Marcos&#x27; earlier pronouncement to improve existing transport infrastructure and modernize the country as next logistics hub in Asia.</p><p>&quot;We believe that infrastructure will continue to be at the forefront of The Philippines&#x27; economic policy under the new Marcos administration, and maintain our robust growth outlook for the construction and infrastructure market,&quot; Fitch Solutions said in a statement </p><p>Incumbent President Rodrigo Duterte has pushed for the ambitious <a href="https://news.abs-cbn.com/news/03/19/22/build-build-build-a-success-presidential-bets-rate-duterte-infra-push">Build, Build, Build</a> program which has also raised infrastructure spending in the country in the last 6 years. </p><p>In an earlier report, the company said it expects to see &quot;<a href="https://news.abs-cbn.com/business/05/11/22/fitch-solutions-sees-policy-continuity-under-marcos-jr">policy continuity</a>&quot; under the new administration.</p><p>The construction and infrastructure market over the coming decade could grow by 16.1 percent in real terms in 2022 and 8.2 percent to the end of the forecast in 2031, Fitch Solutions said. </p><p>&quot;This will see The Philippines as one of the fastest-growing markets in the region,&quot; it said.</p><div><strong>FOREIGN INVESTORS IN WAIT-AND-SEE MODE</strong></div><p>Fitch Solutions also said foreign investors are likely to adopt a wait-and-see approach until the Marcos administration could provide a clearer plan.</p><p>&quot;We stress that the Philippines is running significant budget deficits, and it is unclear how Marcos intends to fund his infrastructure plans,&quot; it said.</p><p>&quot;It remains uncertain if Marcos will focus more on public-private partnerships (PPPs) or continue with Duterte’s shift toward official development assistance financing and loans in recent years, particularly from China (Mainland),&quot; it added.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/06/08/22/marcos-allies-guarantee-ph-china-friendship-to-continue">Marcos, allies guarantee PH-China friendship to continue under new admin</a></li></ul><p>A shift back to public-private partnership would be crucial as the market faces increasing fiscal constraints, it said.</p><p>Although Marcos has yet to introduce a detailed economic plan, his Cabinet is almost complete.</p><p>Members of his economic team include returning Socioeconomic Planning Secretary Arsenio Balisacan who said he plans to reinvigorate PPPs. </p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/05/27/22/next-neda-chief-eyes-reinvigorating-ppps-manufacturing">Incoming socioeconomic planning chief eyes to reinvigorate PPPs, manufacturing</a></li></ul><p>The Philippines has incurred higher debts during the pandemic which brought its debt-to-GDP ratio to 63.5 percent or over the international standard of 60 percent. </p><p>The new admin will face the responsibility of being prudent in spending to support continued growth and debt repayment.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/05/13/22/ph-debt-to-gdp-ratio-balloons-to-635-pct-in-march">Philippines&#x27; debt-to-GDP ratio balloons to 63.5 percent as of end March</a></li>	<li><a href="https://news.abs-cbn.com/business/05/23/22/pcc-chair-balisacan-is-marcos-pick-for-next-neda-chief">PCC chair Arsenio Balisacan is Marcos&#x27; pick for next Socioeconomic Planning chief</a></li></ul><div><strong> RELATED VIDEO:</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2034390" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

Fitch Solutions Inc said the incoming administration of President-elect Ferdinand Bongbong Marcos Jr. is likely to focus on infrastructure.