Monday, March 26, 2007 Trade chief attributes economic growth to agri, services
TRADE Secretary Peter Favila said strong agriculture and services performance contributed to the country's economic growth.
Favila said this is due to the recovery of the agricultural sector and good performance of the services sector. Boosting the services sector is the increase in the business process outsourcing such as the establishment of call centers and medical transcription services.
He added that the export growth rate is the highest in eight years at 14 percent from US$41.5 billion in 2005 to US$47 billion in 2006, which exceeded the 10-percent growth target, the highest growth recorded since 1998.
Among the merchandise exports, electronics is still the top export product and Greater China is the top export market.
In 2006, the number of investment approvals was up by 17 percent, the highest in six years which, Favila said, has renewed confidence in the country's investment level.
Citing records of the Board of Investments (BI) and Philippine Economic Zone Authority (Peza), Favila said P271 billion worth of investments were approved in 2006, surpassing the P18-billion target attracting global giants and big-ticket projects. Approved were 696 projects that would generate 130,376 jobs.
Favila also underscored the "8 by 08" policy agenda of the government intended to bring sustained level of growth in 2008. This policy agenda of President Gloria Macapagal-Arroyo tasks the government to achieve in 2008 jobs creation, a better cost of living, a strong peso, more investments, pro-poor education, pro-poor healthcare, housing, food, green Philippines and anti-terrorism.
He stressed that competitive measures would be needed in sustaining export and ensuring good climate investment such as the improvement of human resources, effective public and private sector management, efficient access to financing, improved transaction flows and costs by eliminating red tape, seamless infrastructure network by ensuring a timely implementation of major infrastructure and energy cost-competitiveness and self-sufficiency to beat the cost of business performance.
The trade secretary also acknowledged the role of the private sector as partners in sustaining economic gains.
