AS the year draws to a close we reflect on how the Philippine economy has fared in 2018. Possibly the most memorable economic events were the implementation of the TRAIN law, the inflation that affected the whole nation down to the most basic family unit, the rice crisis and the government’s investment in infrastructure.
At this point in the year, the nation’s exports are suffering. The trade deficit in October increased by 62.9 percent at $4.212 billion, a huge jump from last year’s and the previous month’s. All this came after imports increased to support the government’s infrastructure projects and after President Duterte signed Administrative Order 13, which paved the way for faster import of food and agricultural products.
There is, therefore, a need to boost exports to be able to recover and reduce the trade deficit. It is good to note, as well, that China still holds the top post among the Philippines’s biggest supplier of imports, with a $2.13-billion billing as of October 2018. That’s an increase of 28.2 percent compared to import bills in October 2017.
But going back to viewing the country’s 2018 performance in its entirety, experts agree that this year saw some rough sailing. The ordinary Filipino felt the sting as prices continued to accelerate and affordable rice became scarce. Inflation, of course, was the biggest problem of the year. From 3.45 percent at the beginning of 2018, it jumped to a worrying 6.7 percent in September, the highest in 10 years.
In November inflation was at 6 percent, which was still higher than the target for the year. Experts are almost unanimous in predicting that we won’t be doing better next year as we head on to election season and start to shoulder TRAIN’s second batch of petroleum taxes. In the business sector, there is great anticipation for the Trabaho bill and lower corporate taxes. However, it has already driven many investors away as the bill threatens to make life more challenging for exporters—something we don’t need especially at this crucial time.
What we have, in terms of hope and opportunity, is a voice and a choice to elect leaders that will (or will not) steer the country toward a better position. The upcoming election is a chance for us to affect change for our own good. Every Filipino needs to wake up and vote intelligently. Specifically, the issues on federalism and Train law have to be examined for its effects on the economy before looking at which candidates will support (or not support) these major reforms. Information on candidates’ personalities and their stand on important national issues may easily be found online. I would like to encourage every responsible voter to read up and do some research before lining up at the polls.