More than halfway in his sixth year
tenure as President, how exactly is the Philippine economy under the
administration of Rodrigo Roa Duterte.
As 2019 ends, economic managers has
done a great job from the initial slowdown in the first two quarters of 2019,
governments spending catch-up and easing of inflation has placed the Philippine
economy still one of the best performers in Asia.
As per Socioeconomic
Planning Secretary and National Economic and Development Authority (NEDA)
Director General Ernesto Pernia,
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| President Rodrigo Roa Duterte (photo credit to owner) |
“We are going to be reclassified as
an upper middle-income country by next year and the downside to that will be
less access to concessional loans. So we really have to make sure that we
finish our major infrastructure projects that are big-ticket projects in terms
of cost by 2023,” he said.
The NEDA director said the government
intends to focus on projects that can be completed by 2022, as well as “those
that can be started substantially such that it will be more difficult for the
next administration to reverse.”
As per the World Bank’s
classification, upper middle-income economies are those with a gross national
income (GNI) per capita of USD3,996 to USD12,375. The Philippine GNI per capita
reached USD3,830 in 2018.
The Philippine gross domestic product
(GDP) accelerated by 6.2 percent in the third quarter, making it the second
fastest-growing major economy after Vietnam, and ahead of China, India,
Malaysia, Indonesia, and Thailand.
It recorded a 5.8-percent growth rate
in the first three quarters of 2019, slightly below the lower-end of the
government’s 6 to 6.5-percent full-year growth rate.
“The economy has continued to grow
this year despite its initial slowdown in the first two quarters and the
obstacles that were thrown its way -- from the El Niño phenomenon that resulted
in water shortages, the delay in the passage of the 2019 budget, to the
US-China trade war, among other things,” Pernia said.
Pernia said the “catch-up plan” on
spending on infrastructure projects has also some impact on increasing the
country’s economic growth in October to December.
“In the fourth quarter, consumer
spending really got boosted by bonuses, OFW (overseas Filipino workers)
remittances also rose 7.7 percent in October, and that also contributed to increased
consumer spending which accounts for about two-thirds of GDP,” he added.
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Report from PNA
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