MANILA—The National Economic and Development Authority (NEDA) underscores the urgent need for the Philippines to reinforce and diversify its growth drivers, boost investments, and improve its export performance. This strategic approach is aimed at fostering a robust and resilient economy that can weather both domestic and external challenges—“future-proofing” the economy against a backdrop of global uncertainty, according to NEDA.
In a presentation to the Economic Journalists Association of the Philippines (EJAP) Mid-year Economic Forum on July 8, NEDA Secretary Arsenio M. Balisacan highlighted that while the Philippine economy has consistently demonstrated robust growth, it has primarily relied on household consumption and services to fuel its expansion over the years. Unlike its regional neighbors such as Vietnam, Thailand, and Malaysia, the Philippine economy has depended less on two crucial pillars—investments and exports.
Balisacan asserted, “While we continue to buoy consumption and enhance services, we must reinvigorate the other pillars of economic growth—investment and exports, particularly manufacturing and agribusiness—to sustain growth and make it more resilient in the years and decades to come.”
The government’s chief economic planner emphasized the detrimental impact of the steady decline of the manufacturing sector’s share of GDP on the country’s poverty reduction efforts. He stressed the importance of the export and manufacturing sectors, which offer stable, regular, and well-paying jobs for unskilled or semi-skilled workers.
“What this analysis of our economic structure indicates is that our economy’s dependence on one pillar of growth—final consumption on the demand side and services on the supply side—limits its capacity to generate high-quality jobs through investment, access trade-facilitated innovations and modern processes as foundation for productivity growth, and seize opportunities for growth from the rapidly expanding markets beyond the country’s shores,” he said.
The NEDA Secretary, together with the rest of the Economic Team, identified the major reforms and policies that the government has been implementing or pursuing to create an enabling policy and regulatory environment conducive to investments. The country’s economic managers remained optimistic about the country’s prospects as they expect these initiatives to bear fruit in the coming months and years.
Balisacan further assured the public that while new challenges and risks emerge, the country’s fundamental development problems are, for the most part, well-understood.
“Thus, you may have noticed that the theme that runs across our presentations remains the same: first, that we have built on the hard-won reforms of past administrations and the key elements are already in place; and second, that the Philippine economy has never been more ready to take off and realize its immense potential across all of these growth drivers,” Balisacan said.
The NEDA Chief emphasized the importance of focusing the government’s efforts to sustain the economic momentum and concluded by offering three directions for the tasks ahead.
“We must: one, stick to our plan and vision, even as we are guided by the past; two, strategically recalibrate when circumstances require us to do so; and; three, work hard on the things that will bring about the largest impact with the limited time that we have,” he ended.
Joining Secretary Balisacan in the forum are Special Assistant to the President for Investment and Economic Affairs (SAPIEA) Secretary Frederick D. Go, Finance Secretary Ralph G. Recto, Bangko Sentral ng Pilipinas Governor Eli M. Remolona, and Budget and Management Undersecretary Joselito R. Basilio. The EJAP Mid-year Economic Forum is an annual event which gathers business journalists and features government’s economic managers to discuss pressing issues relating to the economy. This year’s forum carries the theme “Future-Proofing the Philippine Economy: Policies and Strategies.”
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