(Eagle News)–The Philippines has good prospects in attaining the 6.5- to 7.5-percent full-year growth rate set by the National Economic Development Authority for this year to ultimately elevate the country to the upper-middle-income status by 2025.
According to Albay Rep. Joey Salceda, one of Congress’ economists, this was because of the country’s strong agriculture, services and industry sectors that drive growth.
“Mukhang services pa rin po kasi mayroon pa tayong comparative advantage lalung-lalo na sa mga BPO, call centers… ay hindi pa po talaga nalalampasan tayo ng mga kalaban natin, kakumpetensiya natin,” Salceda, also the chair of the Committee on Ways and Means in the House of Representatives, said.
“At siyempre, kasama po diyan iyong wholesale trade at saka mga… iyong mga retail trade gawa nga po ang Pilipinas ay parang… kumikita tayo from abroad tapos dito ginagastos. So halimbawa OFW, umaakyat pa rin ng 3 percent per year so may driver po iyong domestic consumption,” he added.
As for the agricultural sector, he expressed optimism it would achieve a growth even higher than its usual 2.5 percent, with Agriculture Secretary Francisco Tiu Laurel Jr. focused on the implementation of Department of Agriculture (DA) programs aimed at boosting production.
He said Laurel also has a strong grasp of the sector.
“Lalung-lalo na ‘pag sa agriculture galing ang growth, may ginhawa po iyan pagdating sa poverty dahil nga po ang poverty natin, karamihan ay dahil po mataas ang presyo ng kinakain at ang lowest 30 percent ng ating ekonomiya, ang kanila pong kinakain ay 60 percent ay galing po sa agriculture…”
“So, ‘pag mababa ang presyo, bababa din po ang poverty. So, maganda po kung galing na sa agriculture ang growth po ng Pilipinas,” he said.
Overall, he said he expects a potentially even higher economic growth rate than the one set by NEDA this year, with these sectors contributing more.
“Mukhang kakayanin natin na mataasan iyon. Kasi ‘pag titingnan mo ang Pilipinas, simple lang iyan – 2.5 ang agri; 4.5 ang industry; 5.5 ang average for the past 15 years… ang atin pong growth rate kasi maalala ninyo naman 2020 saka 2021, bumaba tayo…”
“So iyong mga dati nating nagse-seven percent tayo, so mukhang ‘pag in-average out mo iyon – nagiging 2.5 agri; 4.5 industry; at saka 5.5 ang services,” he said.
NEDA has said a 6.5- to 7.5-percent full-year GDP growth rate would generate economic opportunities, increase employment, and raise per capita incomes.
In its outlook of the Philippines updated in November 2023, the World Bank said that, with continued recovery and reforms, the country was “getting back on track on its way from a lower middle-income country with a gross national income per capita of US$3,950 in 2023 to an upper middle-income country (per capita income range of US$4,466 -US$13,845).”
