The business community Thursday came out with glowing appraisals of the Philippine economy’s “expected strong finish” but, in the same breath, it urged the government to carry out critical measures to sustain and “further our growth trajectory.”
The Philippine economy reportedly grew by 7.2 percent in 2013, higher than most expectations from the government and the private sector.
“The final GDP figure is solid and more efforts are needed to sustain and make it more inclusive,” John D. Forbes, senior advisor of the American Chamber of Commerce, said in a text message Thursday. “Manufacturing had its best year in a long time, agriculture continues to disappoint, and mining is severely underperforming. Poor infrastructure is holding back higher GDP growth.”
Peter Angelo V. Perfecto, executive director of the Makati Business Club, commented in another text message that the government should prioritize the rollout of public-private partnership (PPP) projects and post-typhoon reconstruction, because these would “contribute significantly toward sustaining this growth momentum” in 2014.
Addressing the mining revenue sharing issue and consideration of amendments to economic provisions of the Constitution may help improve further our growth trajectory. However, the government and private sector must work together to achieve inclusive growth—growth that will be felt by, and shared with, more and more Filipinos,” Perfecto said.
According to Trade Secretary Gregory L. Domingo, the agency is highly bullish about the country’s prospects in 2014, and believes that the economy will still be able to “achieve a growth rate similar to 2013, as the factors and conditions that led to that growth continue to exist.”
The Oxford Business Group also expressed optimism for the Philippine economy, estimating growth in 2014 to range from 6.5 to 7 percent.
“Despite the calamities, the Philippines in 2013 was Asia’s economic success story, as it became a more attractive destination. Growth in foreign direct investments is expected in 2014 given [decisions by three ratings agencies] to upgrade the Philippine economy. GDP growth in 2014 may be attributed to resurgence in manufacturing, reconstruction efforts, growth in export, services and remittances,” said Rodrigo Diaz of the Oxford Business Group.