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Thursday, September 01, 2005
Editorial: Modest economic growth
Exhilarating is the word used by some sectors to describe the report that despite the prevalently negative national condition that persisted during the second quarter of the current year, the country's economy prevailed and did attain a positive, albeit modest, 4.8 percent growth rate in its gross domestic product (GDP).
They consider such a feat for an economy that has received relatively almost no encouragement from the government as impressive.
This positive performance tends to gain credence with the recent report of the Department of Labor and Employment (Dole) 7 that there has been less number of workers retrenched this year than in a similar period last year.
Some 3,700 Central Visayan workers lost their jobs when 34 business firms closed shop due to economic reasons. In fact, from January to June this year, 26 business firms closed, affecting 731 workers.
The prospect of the labor sector for the third quarter of the year seems to be looking up, with the report that "some 24,928 jobless workers in the region, particularly in Cebu, found employment with Dole's assistance."
The third quarter 8.3 unemployment rate is a positive change that reversed the rates of 14 percent and 12 percent respectively during the first and second quarters of the current year, indicating a hopeful situation.
However, some reservations have been expressed regarding the projection of the National Economic Development Authority (Neda) "that the Philippines will meet the 5.3 percent minimum GDP growth target for this year."
During a joint Senate-House economic affairs committee meeting with the Bangko Sentral ng Pilipinas, Sen. Mar Roxas and Rep. Joey Salceda expressed the belief this year's output will fall below targets.
In the observation of the two lawmakers, the combined impact of rising oil prices and the siphoning effect of the expanded value added tax would bear upon the nation's economic capability to meet the Neda-targeted growth rate.
The gross national product in the second quarter of this year reportedly grew only 4.7 percent, as compared to the 7.4 percent in a comparable period last year.
In the face of this scenario, an interesting question emerges.
What might have been the quality of the nation's economic performance had there been a more idyllic social and political circumstance prevailing in the country, instead of the rather tempestuous and chaotic national condition?
(September 1, 2005 issue)
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