PROVIDED the current macroeconomic policies are maintained, economists agreed that the Philippines could continue growing at more than 6.0 percent a year and per capita income would improve by 2022.
“I am optimistic that the Philippines could maintain the growth path because our macroeconomic fundamentals such as interest rates, inflation rate, dollar reserves, and the like have maintained their splendid growth track,” said Cid L. Terosa, dean of the University of Asia and the Pacific School of Economics.
But he said it would take more than six years to achieve an upper middle income status for the Philippines based on World Bank standards on per capita income.
The Philippines is currently classified as a lower middle-income country.
In a press conference Thursday, Socioeconomic Planning Secretary Ernesto M. Pernia said the Philippine economy expanded by 6.6 percent in the last quarter on the back of high domestic demand in terms of investment and consumption.
This brought the average full-year gross domestic product (GDP) growth rate for 2016 to 6.8 percent, which is along the high end of the government’s growth target of 6.0 to 7.0 percent for 2016 and the fastest in Asia, with China growing by only 6.7 percent and Vietnam at 6.2 percent.
“We are very happy with the outcome. This only means that we have to do more work to sustain the momentum,” said Glenn Anthony Soco, president of the Mandaue Chamber of Commerce and Industry (MCCI).
“2016 GDP growth was higher that 2015 because of election spending. There was also robust OFW remittances from strong dollars and continued high level government spending. It is in line with our expectations and will still give the Philippines as one of the highest economic growth (players) in Asia,” said Cebu Bankers Club past president Maximo Rey Eleccion.
MCCI past president Philip Tan said he expected a higher figure. He believes the country’s 2017 GDP will be significantly shaped by US President Donald Trump’s administration.
“Let us be reminded that our economy is dependent on global influence, with Trump being the biggest factor for our GDP for the current year. His policies, whether it is favorable or not, will surely affect our exports and BPO, in terms of employment,” the businessman pointed out.
Cebu Chamber of Commerce and Industry (CCCI) president Melanie Ng called the public and private sector to continue to capture opportunities and address issues that will drive economic growth.
“We’re very optimistic and looking forward to even more growth this year,” Ng said.