Economic growth-A A +A
Thursday, December 27, 2012
VARIOUS economic yearend assessors appear to be looking rather positively at the state of the Philippine economy over the last few quarters. Sources have somehow arrived at their conclusions, I like to think, using different trails to arrive at somewhat similar heartening thoughts. One of these is the economic planning head that reportedly told a yearend economic briefing recently “that gross domestic product would exceed six percent for 2012, well above the five-six percent expansion tipped by officials in Manila.”
Another source of positive outlook for the Philippines during the year comes from the National Economic Development Authority (Neda) 7, which averred that “air and sea traffic in Central Visayas stayed upbeat for the first half of the year” in its assessment in a regional economic situation report. For the aviation industry, the Neda cited “expansion activities of airline companies as signs the industry was doing well.” The agency also pointed out resumption of flights between Bantayan Island and Cebu as another positive indicator of growth.
From the private sector, the Aboitiz Group is reportedly “relying on its power business to drive the company’s future growth,” this according to a top official last week. No less than the AboitizPower (AP) group’s chief executive officer (CEO) reportedly feel that AP and its partners “are investing P170 billion in the next four years into additional generation capacity for several greenfield and brownfield projects of both hydro and clean cool technology.” The AP group CEO said they will continue to spearhead its growth.
“AP is the holding company for the Aboitiz Group’s investments in power generation, distribution, retail and power services. The company recorded a net income of P18.4 billion for the nine months of 2012, a 12-percent increase compared to the P16.2 billion recorded during the same period last year.” Given this business reality, the AP chief, during the annual meeting with the Cebu media at the Cebu City Marriott Hotel recently, said they will “continue to enhance our distribution networks, driving further efficiencies and productivity, with the end goal of improving reliability and customer service.”
The Switzerland-based UBS, in its recent growth projection, reportedly increased the Philippine economy this year “to 6.3 percent from 5.8 previously on account of the government’s upward revision of the second quarter growth.” The UBS is said to have noted that this fact is noteworthy, “the Philippine real GDP growth...surpassed six percent only five times since 1980, in 1988, 2004, 2007, and 2010.” This matter has been reported in the UBS Asian Economic Report “Philippines by the Numbers” only a few days ago.
Think of our economic condition in a positive way as some of our business leaders do, and I believe we have something more wonderful to look forward to during the next few years.
Published in the Sun.Star Cebu newspaper on December 28, 2012.