SOCIOECONOMIC Planning Secretary Ernesto Pernia has urged businesses to take advantage of the so-called Goldilocks period, an economic situation characterized by low inflation and high growth.
“Over the past two years, our economic growth is pegged at an average of 6.8 percent. This means that over the recent years, economic growth has swum sharply upwards and in a sustained fashion,” Pernia said during the recent Philippine Economic Briefing in Clark Freeport.
He attributed this economic progress to rising foreign direct investments and the resurgence of manufacturing.
“Our total factor productivity has also been on the rise, making it now the fastest among the major Southeast Asian countries at 6.1 percent,” Pernia said.
With the bulk of investments going into the manufacturing sector, more jobs have been created.
“This vibrant economy translates into more and better jobs. More jobs reduce unemployment and better jobs simply mean that there are more wage and salary types of jobs that are being created compared with previous years,” Pernia explained.
Even the tourism sector is peaking compared to previous years, translating into more revenues.
As far as the administration is concerned, Pernia said they will sustain and further accelerate the country’s economic performance.
“Starting this year, we aim to raise this economic growth performance to between seven and eight percent. And I think this is achievable given that this year, you will see the frenetic activity in the groundbreaking of several major projects as well as minor projects in the provinces and towns of our regions,” he said.
Aside from physical infrastructure, the government is also determined to improve human capital investment through quality education and health care.
“We are also determined to initiate and sustain economic reforms. Among these, the comprehensive tax reform program is going to be completed hopefully by the end of the year. And so is the ease of doing business, the cutting of red tape to the minimum, the lifting of restrictions on foreign investment in different areas and activity of the economy,” he said. (PIA Central Luzon)