Economy projected to grow 6% in 2015; high growth trajectory to continue
Socio-economic Planning Secretary Arsenio M. Balisacan yesterday projected that the Philippines will continue to experience rapid economic growth during the next administration, “given the reforms and long-term investments in infrastructure and human capital” that the government has pursued.
The economy is seen to grow 6 percent this quarter to finish the full year at 6 percent, making the Philippines one of the fastest-growing major economies in Asia.
With this high growth trajectory expected to continue as domestic demand remains strong, Balisacan said economic growth can accelerate to a level that will bring the Philippines to higher middle-income economy status by the end of the next administration.
“(But) to make this happen, we need to continue to pursue policies and programs that will improve industries’ competitiveness and productivity and further increase investments in human capital development,” Balisacan said during his year-end economic briefing yesterday.
The World Bank currently classifies the Philippines as a lower-middle-income economy, with a gross national income (GNI) per capita of $1,046 to $4,125.
The target is to level up to the upper-middle-income status, which refers to economies with GNI per capita of $4,126 to $12,735.
In the first nine months of this year, the Philippines grew at an average of 5.6 percent. The economy is expected to grow 6 percent in the last quarter “due to strong domestic demand, more jobs and more public and private investments.”
The Philippines ranks among the fastest-growing economies, growing at an annual average of 6.2 percent from 2010 to 2014.
“This has been our highest five-year average growth since the mid-70s. And with the recent performance of our economy for three quarters of this year, we are confident that we shall see this high growth pattern continue and even improve throughout next year and the succeeding administrations,” Balisacan said.
Balisacan, who is also director-general of the National Economic and Development Authority, said it is important for the Philippines to take advantage of the demographic sweet spot it is currently in, with relatively young population joining the labor force in the next decade.
He also cited the need to further develop infrastructure facilities, encourage technological innovation, and pursue regulatory and structural reforms to unleash the country’s potentials and maximize gains from regional integration.
He also stressed the need for a strong disaster risk management program and to remove regulations that slow down services or project implementation.