Philippine Public Construction is way above its historical trend of 3.40% of GDP. As of the third quarter of 2018, Philippine Public Construction Gross Value as a percentage of GDP hit 4.15%. This is the highest ratio since 1998.
This boost in public construction, particularly in infrastructure, has led to the first cumulative overhang since 2003.
As long as infrastructure spending is not done in white elephants, such as China's famous
bridges to nowhere, this bodes well for the Philippine economy because the fiscal multiplier from such projects is very significant and will increase efficiencies in the entire Philippine economy.
