The Philippine economy remainedresilient to global headwinds in 2016. While aslower-than-expected global recovery weakened net exports,surging domestic demands pushed the annual GDP growth rateto 6.8 percent, year-on-year. Investment drove economy-widegrowth for the first time since 2013, as thegovernment's expansionary fiscal-policy stance helpedcapital formation to expand by 20.8 percent year-on-year ledby the construction sector. Consumption growth remainedstrong at a rate of 6.9 percent year-on-year, asaccommodative monetary policies kept interest rates low,supporting a double-digit expansion in consumer lending.Meanwhile, low inflation at 1.8 percent boostedhouseholds' purchasing power, while a steady increasein remittance inflows accelerated the growth of householdconsumption. Overall, 2016 saw a marked rise in consumerconfidence, reflecting a healthy job market and effectivesocial protection programs.
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