New York Professor says that under Duterte 'The Philippines Is Ready To Rise Again'

New York Professor says that under Duterte 'The Philippines Is Ready To Rise Again'




Its Philippines time to shine.


A positive outlook was given by McKinsey Global Institute (MGI) during its study where it stated that the “Philippines among the few emerging market economies that are well-prepared to achieve sustained growth over the next decade-- provided that corruption, inflation, and revolution don’t stand in the way.”

The usual culprits brought the Philippines to a down spiral trend : corruption, inflation, and revolution.

But that is the story of the “old” Philippines, McKinsey Global Institute (MGI) has taken great strides in achieving its full economic growth :

President Rodrigo Roa Duterte (photo credit to original owner)


the Philippines economy has shown a great deal of resilience in recent years, beating China’s at some point. At the end of 2017, it grew at an annual 6.9% in the September quarter, the strongest growth since the third quarter 2016. That’s slightly above China’s third quarter annual growth, which grew 6.8% in the third quarter of 2017, that country’s weakest pace of expansion since the fourth quarter of 2016. And the Philippines’ economy was still growing at 6% at the end of 2018.

The study took note the Duterte economic policies that provides “stable macroeconomic environment, tax reforms, market liberalization, and brisk infrastructure spending.”

That is the main reason why the country has been labelled to be one of those emerging economies that would achieve “sustainable growth.” Provided that corruption, inflation, and revolution would not happen in the near future.

In his article Mr. Panos Mourdoukoutas, a Professor and Chair of the Department of Economics at LIU Post in New York, and a professor in at Columbia University wrote the promising outlook for the Philippines taking into account what Duterte brings to the country.

Read below full quoted article below:

 

The Philippines Is Ready To Rise Again

The Philippines economy is ready to rise again—regain its old growth momentum, that is.
That’s according to a recent McKinsey Global Institute (MGI) study, which mentions the Philippines among the few emerging market economies that are well-prepared to achieve sustained growth over the next decade-- provided that corruption, inflation, and revolution don’t stand in the way, it should be added.

Achieving sustained growth over a couple of decades or longer is among the top challenges for emerging economies. Only 18 countries out of the 71 emerging economies studied by the MGI achieved certain growth benchmarks. Like more than 3.5% per capita GDP growth over 50 years or 5% growth over 20 years, lifting millions of people out of poverty.

China, Malaysia, India, Vietnam, Ethiopia and Uzbekistan are among the countries that made the list. But not the Philippines. Its high growth rates of the 1960s were interrupted by the familiar villains: corruption, inflation, and revolution.

Still, the Philippines economy has shown a great deal of resilience in recent years, beating China’s at some point. At the end of 2017, it grew at an annual 6.9% in the September quarter, the strongest growth since the third quarter 2016. That’s slightly above China’s third quarter annual growth, which grew 6.8% in the third quarter of 2017, that country’s weakest pace of expansion since the fourth quarter of 2016. And the Philippines’ economy was still growing at 6% at the end of 2018.

GDP annual growth rate in the Philippines averaged 3.72% from 1982 until 2017, reaching an all-time high of 12.40% in the fourth quarter of 1988 and a record low of -11.10 percent in the first quarter of 1985, according to Tradingeconomics.com.

The Philippines’ economy has been helped by a number of pro-growth policies under the Duterte administration. Like a stable macroeconomic environment, tax reforms, market liberalization, and brisk infrastructure spending.

That could explain why the MGI study includes the Philippines together with Sri Lanka to the next group of emerging market economies ready to achieve sustainable growth. Provided, of course, that corruption, inflation and revolution -- which are still present in Filipino society -- don’t cut the country’s rise short again.

And that could explain why financial markets are skeptical about the Philippines economic prospects.



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