THE economy continued to slow down in 2018 as gross domestic product (GDP) grew by only 6.2 percent, missing the government’s revised target band amid a global economic slowdown, higher prices and weak business sentiment.
This is the lowest year-on-year growth under the Duterte administration, but Socioeconomic Planning Secretary Ernesto Pernia described it as stable and pointed out that the GDP, or the total amount of goods and services produced in the country, grew steadily at more than 6.0 percent in the last seven years.
“This is a firm finish that cements the Philippines’ standing as one of the fastest-growing economies in Asia,” Pernia said in a press conference on Thursday, January 24.
He also maintained a positive outlook, saying the midterm elections in May and the preparations for the Southeast Asian Games in November would be potential growth drivers this year.
Pernia also said the expected ratification of the Bangsamoro Organic Law (BOL) would open up growth prospects both for Mindanao and the entire economy.
The Philippine Statistics Authority (PSA) reported Thursday that the GDP expanded by 6.1 percent in the fourth quarter, bringing the full-year growth to 6.2 percent.
This is lower than the government’s revised growth target band of 6.5 to 6.9 percent for 2018 and lower than the 6.7 percent in 2017 and 6.8 percent in 2016, when President Rodrigo Duterte assumed office, but higher than the 5.8 percent recorded in 2015.
Pernia noted, however, that the economy grew by an average of 6.5 percent in the first 10 quarters of the Duterte administration.
He was also optimistic that for this year, an election year, household consumption will recover as inflationary pressures subside.
Pernia cited the subdued outlook on international oil prices. He also reiterated that if the Rice Tariffication Law is passed, prices of rice will lower and temper inflation.
“The government remains vigilant of inflation risks. Again, fast tracking of preparations for the implementation of the Rice Tariffication Law given its nearing enactment will help mitigate this risk,” he said.
The government is also monitoring possible downside risks such as the US-China trade dispute dampening global demand.
Presidential Spokesperson Salvador Panelo said he was confident that Duterte's economic team was on the "right track" to meet the 7.0 to 8.0 percent economic growth target for 2019.
"'Pag may target ka at hindi mo nakuha, syempre medyo disappointed ka. But it does not mean ano ka na, you feel you are such a failure. You work harder para you can reach your target," Panelo said.
(If you have a target and you do not meet it, of course you are somehow disappointed. But if does not mean you feel you are such a failure. You work harder para you can reach your target.)
"The economic managers are very confident na we are on the right track. 'Di ba sinasabi nila marami na tayong ginawa para ma-neutralize natin 'yung mga adverse economic conditions. And they are working now. As you put it, the best is yet to come," he added.
(The economic managers are very confident that we are on the right track. They are saying that we have done many things to neutralize the adverse economic conditions. And they are working now. As you put it, the best is yet to come.) (MVI/Ruth Abbey Gita/SunStar Philippines)