Govt to push for reforms to achieve inclusive growth
Credit to Author: Anna Leah E. Gonzales| Date: Mon, 06 Jan 2020 16:18:26 +0000
The Philippines continues to be one of the fastest growing economies in the region despite the initial slowdown in the first two quarters of the year due to the delayed passage of the 2019 budget.
Socioeconomic Planning Secretary Ernesto Pernia“The economy has continued to grow this year despite its initial slowdown in the first two quarters and the obstacles that were thrown its way — from the El Niño phenomenon that resulted in water shortages, the delay in the passage of the 2019 budget, to the US-China trade war, among other things,” said Socioeconomic Planning Secretary Ernesto Pernia.
The Philippine economy grew by 6.2 percent in the third quarter of the year, the second fastest growing economy after Vietnam.
It was also ahead of China, India, Malaysia, Indonesia and Thailand.
Pernia attributed the acceleration of growth to the robust public spending, consumption spending and the easing inflation rate, which as of November was at 1.3 percent, significantly lower than the 6.0 percent last year.
“Prices, which are a major concern of ordinary Filipinos, have remained stable. Year-to-date headline inflation for 2019 stands at 2.5 percent, mainly driven by lower prices of food, primarily for and corn, relative to the previous year’s level. In the case of non-food items, the decline in global oil prices resulted in price rollbacks for domestic petroleum products,” he said.
Pernia added that one of the achievements of the government is also the “more inclusive growth.”
“More importantly, growth has been more inclusive, as we were able to lift more Filipinos out of poverty in 2018 when population poverty incidence dropped to 16.6 percent of the population from 23.3 percent in 2015,” he said.
“The number of poor Filipinos — or the magnitude of poverty — went down from 23.5 million Filipinos in 2015 to 17.6 million Filipinos in 2018. This means that we have lifted 5.9 million Filipinos from poverty between 2015 and 2018,” Pernia further said.
Improving employment figures
Employment rate in the country likewise improved this year.
Data from the October 2019 Labor Force Survey of the Philippine Statistics Authority (PSA) showed that the country’s employment rate rose to 95.5 percent, the highest in all previous October rounds of the survey in the last ten years.
“Our unemployment rate dropped from 5.1 percent in 2018 to 4.5 percent this year, the lowest in the last ten years. Even our underemployment rate eased to 13.0 percent from 13.3 percent in 2018,” Pernia said.
Challenges and priorities
“Looking at these milestones in our journey, we see a stable economic performance for 2019, even as we remain vigilant and prepared to face risks such as possible water shortages in 2020, weak global growth and stagnating world trade, disruptive technologies, and the volatility of oil prices,” Pernia said.
He said that the country’s economic growth is projected to be between 6.0 to 6.5 percent for 2019 and 6.5 to 7.5 percent in 2020 to 2022.
“As Filipinos, there is much that we can look forward to in 2020, as we will continue to invest in the people’s future while addressing immediate and medium-term challenges,” he said.
One of the government’s priorities is the improvement of infrastructure in the country.
A joint committee of the National Economic and Development Authority (NEDA) recently approved P626.11 billion worth of infrastructure and transportation projects.
Among those approved by NEDA’s Investment Coordination Committee-Cabinet Committee were the unsolicited operate-add-transfer proposals for the Davao International Airport and Laguindingan Airport; the Metro Rail Transit 4 and EDSA Greenways projects; the Maritime Safety Enhancement Program; and the Bataan-Cavite Interlink Bridge Project.
Also approved were the Cebu-Mactan Bridge (fourth bridge) and Coastal Road Construction Project (New Mactan Bridge Construction Project); the Davao City Coastal Bypass Road, including the Bucana Bridge Project; the Capas-Botolan Road Project; Panay-Guimaras-Negros Island Bridges Project; Davao City Bypass Construction Project-Second Change in Scope and Cost and Supplemental Loan; and the Samar-Pacific Coastal Road Project-Loan Validity and Implementation Extension and Increase in Cost.
“The approval of these projects is a pivotal step in fulfilling our thrust of fostering growth centers in the regions and expanding access to development opportunities throughout the country,” Pernia said.
“These are in line with the National Spatial Strategy to make cities like Metro Manila efficient and to improve connectivity between areas,” he added.
On the external front, Pernia said there is also a need to establish new trade relations to withstand the effects of a projected global slowdown.
“To withstand external shocks and promote growth over the medium term, our country must diversify products and markets through the establishment or improvement of new and existing trade relations with strategic partners,” he said.
Pernia said that moving forward, some of the priority bills that they are pushing for include the amendments to the Public Service Act, the Retail Trade Liberalization Act, and the Foreign Investment Act. These priority bills will support the expansion of foreign direct investment and trade opportunities in the Philippines.
Pernia said the bill that should be prioritized is the National Land Use Act as this will help better utilize, manage and develop the country’s land resources.
He said key policy reforms that should be pursued over the next three years include the remaining tax reform packages; Budget Reform Bill; Strengthening the Culture of Planning in Government; Amendments to the BOT (Build-Operate-Transfer) Law; Department of Water and Water Regulatory Commission; Disaster Resiliency Bill; and the National Quality Infrastructure.
To help improve the agriculture sector, Pernia also called on the Department of Agriculture other concerned agencies to swiftly implement the programs and projects under the Rice Competitiveness Enhancement Fund.
“Perhaps, among the priority projects should be the provision of mechanical dryers, particularly in areas where we lack ‘solar drying’ facilities. As the harvest season is ongoing, the government should continue to directly buy palay (unmilled rice) from local producers affected by the unprecedented decline in farm gate prices to help curb their losses,” he said.
To counter the risk of the spread of African swine fever, Pernia said the government must continue to enforce its biosecurity measures by putting in place stringent quarantine checkpoints, provision of disinfection facilities, and intensified anti-smuggling and meat inspection efforts.
“We in the government remain committed to pass reforms and implement programs and projects, not solely for economic growth, but most especially for realizing the vision of providing every Filipino of a matatag, maginhawa at panatag na buhay,” Pernia said.