The Philippine government is setting a higher gross domestic product (GDP) growth target for 2017 of between 6.5% and 7.5%, according to Socioeconomic Planning Secretary Ernesto Pernia.
He said the Philippines remains one of the fastest growing economies in Asia today, faster than China, Vietnam, Indonesia, and Malaysia. With a 7% GDP growth in the first three quarters, Pernia said “we are sure to achieve, if not surpass, our target of 6% to 7% growth for the whole of 2016.”
On the demand side, household consumption as well as investments in construction, public infrastructure, and durable equipment drove economic growth. This was supported by low inflation, low interest rates, better labor market conditions, and the steady growth in the remittances of overseas Filipino workers. Government assistance such as the Pantawid Pamilyang Pilipino Program, or 4Ps, also gave added boost to consumer demand.
On the supply side, the agriculture sector is starting to recover, finally breaking five consecutive quarters of decline. Growth in industry, particularly manufacturing, construction, and utilities, accelerated. The services sector likewise improved overall, with stronger expansion in trade, finance, real estate, and public administration.
All things considered, Pernia said, “our economy’s continuing strong growth, decreasing poverty, lower unemployment rates, and new foreign investments this year are all good signs of things to come.
“Together with a low inflation environment, sustained strong growth will pave the way for continued and faster poverty reduction. We see this momentum continuing next year and hopefully in the years to come.”
The Cabinet official said, however, that this will have to be supported by sustained and deepened reforms. These include the comprehensive tax reform program being finalized by the Department of Finance, sustained investments in infrastructure, easing of restrictions on foreign investments, reduction of cost of doing business, strengthening of agro-industrial linkages, and the full implementation of the Reproductive Health Law.
“Moreover, high economic growth will mean nothing if the welfare of the poor and marginalized is not improved. Thus, along with increased investments in human capital to improve access to economic opportunities, we will continue to prioritize agricultural development within the broader framework of rural and regional development,” Pernia, who is also director general of the National Economic and Development Authority (NEDA), noted.
NEDA is currently drafting the Philippine Development Plan 2017-2022, which is set for release by early February next year.
It is the first medium-term development plan to be anchored on AmBisyon Natin 2040, which envisions the Philippines as “a prosperous, predominantly middle-class society where no one is poor, where our people will live long and healthy lives, be smart and innovative, and will live in a high-trust society.”
The plan will also focus on regional, infrastructure, agricultural, and cultural development, strategies all consistent with the state’s long-term vision, the administration’s 0-10 Point Socioeconomic Agenda, and the United Nation’s Sustainable Development Goals.
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