Beyond the good news
Standard and Poor’s says the Philippines is now leading growth in Southeast Asia, a region that is “outperforming” others this year. S and P, which recently upgraded the Philippines to investment grade, sees 6.9 percent growth for the country in 2013 – above the projected 5.5 percent for the 10-member Association of Southeast Asian Nations.
The Australia and New Zealand Banking Group Ltd. is even more bullish, projecting 7.1 percent growth for the Philippines this year. Moody’s Investors Service is also expected to raise its rating for the Philippines to investment grade.
All that positive news must not go to waste. With the opening of the 16th Congress, the executive and legislative branches must work together to pass measures that will create a better environment for local businessmen and make the country more competitive in attracting foreign direct investment. The Philippines may be leading Southeast Asia in economic growth, but it’s still a laggard among ASEAN’s founding members in FDI levels. The country also continues to rank low in international surveys on ease of doing business.
The administration knows what’s missing from all the rosy reports: the trickle-down effect. President Aquino has acknowledged that his government needs to work harder to achieve inclusive growth and lift the 40 percent of the population from poverty. According to official government statistics, poverty levels have remained unchanged from 2006 until the first quarter of 2012.
Generating jobs, and not the contractual or seasonal type, should narrow the yawning income gap and allow more Filipinos to enjoy the benefits of robust economic growth. The President has said this is his thrust in the second half of his term. The results will be much awaited.