THE government’s economic and business policies are bearing good fruit, as evinced by the strong showing of the country’s economic performance in 2014, against expectations.
According to a statement two weeks ago of Economic Planning Secretary Arsenio Balisacan, the economy grew 6.9 percent in the last quarter of 2014, for an average 6.1 percent growth for the year.
The figures were higher than the forecasted 6 percent and 5.8 percent respectively.
In terms of rankings against other Asian nations, in the fourth quarter our country was third after China (7.3 percent) and Vietnam (7 percent).
But for the year overall, the Philippines, at 6.1 percent, came in second to China’s 7.4 percent, with Vietnam third at 6 percent.
All three major sectors—agriculture, industry, and services—showed strong performances in 4Q-2014.
Agriculture grew 4.8 percent during that period, compared to the 0.9 percent it notched in the same period the previous year.
Industry grew 9.2 percent, the highest showing in the last six quarters, and services grew 6 percent.
The country is developing apace, with good chances of stronger growth this year, more so after Budget Secretary Florencio Abad announced last week that government is poised to increase its infrastructure investments this year.
This should address the underspending issue of the previous year that was said to have slowed economic growth in the early quarters.
The second-largest allocation in the 2015 national budget—P303.2 billion—goes to the Department of Public Works and Highways. From that amount, P185.8 billion will be spent to complete bridges along national roads by 2015 and all national roads by 2016.
The Department of Transportation and Communication will also be embarking on its own infrastructure programs, and has been allotted a budget of P59.5 billion. These programs include improvement of the railway systems as well as airport and seaport projects.
According to Abad, infrastructure spending will account for four percent of the country’s projected gross domestic product for this year, and five percent in 2016.
With the aim of further developing the agriculture sector, which made a strong showing last year, the Department of Agriculture was given an additional 11.5 percent for their budget, for a total of P89.1 billion for 2014.
The department also has infrastructure projects in the pipeline, such as the construction of farm-to-market roads, irrigation systems, fish ports, and fish landings.
Also according to Balisacan, lower petroleum prices and electricity rates and a healthy supply of key food items led to lower inflation of 2.4 percent in January this year from 2.7 percent in December last year.
The lower inflation “bodes well for consumption growth,” he added.
Meanwhile, the Philippines is seriously pursuing other economic development initiatives, including those on the international front.
The country is chair of the 2015 Asia-Pacific Economic Cooperation summit, and held the Apec Senior Officials’ Meeting from January 26 to February 7 at Clark and Subic.
The discussions focused on joint actions related to trade and investment with the objectives of creating jobs, improving productivity, and ensuring economic sustainability, in line with an “inclusive economies” policy to combat inequality and promote regional and global growth.
Attending the meetings were some 1,700 senior officials and technical experts from the 21 Apec member economies: Australia; Brunei Darussalam; Canada; Chile; China; Hong Kong; Indonesia; Japan; South Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; Philippines; Russia; Singapore; Taiwan; Thailand; the United States; and, Vietnam.
We congratulate the organizers of this year’s Apec, and wish all the participants the best as they forge policies and guidelines that will enable the region to realize its potential for growth and development, ensuring better and greater opportunities for its people.
This, coupled with the good news on overall Philippine economic growth last year, augurs well for this year and we look forward to upwardly-adjusted forecasts for 2015 that reflect the effectiveness of the reform agenda of the present administration.
Atty. Jose Ferdinand M. Rojas II is the vice chairman and general manager of the Philippine Charity Sweepstakes Office.
