Metro Manila (CNN Philippines, August 26) — A local think tank on Saturday said it does not see the country reaching government’s target of a 6% to 7% economic growth this year.
“We think it’s impossible for the government to achieve its targeted growth rates,” Sonny Africa, executive director of IBON Foundation, told a forum.
“Tingin namin hindi lalagpas ng 5 to 5.5 percent ang economic growth [We think economic growth won’t exceed 5 to 5.5 percent]” he noted.
Africa said that while the Philippines is deemed one of the fastest-growing economies in Asia, the country also suffers from high rates of inflation, unemployment, and poverty.
“Palaging pinagmamalaki yung growth performance ng Pilipinas as if ito yung pinaka-headline na palatandaan na umuunlad ang bansa…,” he said.
“Kung hindi nararamdaman ng ordinaryong Pilipino, kung naiiwan ang mayorya at dumadami ang bilang ng mga mahirap, dumadami bilang ng mga walang trabaho, dumadami ang kita sa pang araw-araw na gastusin, para sa amin walang kabuluhan yung economic growth na yun,” he also said.
[Translation: The Philippines’ growth performance is always being highlighted, as if this is the principal proof that the country’s economy is improving. But if ordinary Filipinos don’t feel that growth, if the majority is left behind and there are increasing numbers of poor and unemployed Filipinos, and the costs of basic necessities are rising, for us that economic growth has no meaning.]
The local economy must expand by 6.6% in the second half of the year to hit even the lower end of the Marcos administration’s goal.
For economist Michael Ricafort, reaching that number is still possible.
He cited expected increases in production, consumer spending, and other economic activities during the latter part of the year.
“If you’ll look at business and economic activities, there’s this seasonal pickup in the third quarter, seasonal increase in importation, in manufacturing, and overall production—all in preparation for the seasonal peak in demand and sales in the fourth quarter during the Christmas season,” said Ricafort, chief economist at Rizal Commercial Banking Corporation.
Earlier this week, National Economic and Development Authority Secretary Arsenio Balisacan said the government remains confident of its growth target, as state agencies accelerate their spending coupled with cooling inflation.
Balisacan also expressed optimism that the robust demand usually being recorded in the last stretch of every year could further lift the Philippine economy, and that the drop in the inflation rate — which has been on a downtrend since February — would provide “a big boost to domestic demand.”
CNN Philippines EJ Gomez contributed to this report.
