NEDA Director General Augusto B. Santos highlighted the strength of the country’s economic fundamentals, notably the country’s performance in 2004, when the economy grew by 6.1 percent – the strongest in 15 years.
"In the first quarter of 2005, the Philippines recorded a remarkable 4.6 percent growth –higher than that of other oil importing ASEAN countries," he said.
Santos said the lynchpin sectors of consumption, services, and overseas Filipino workers have continued to deliver steady growth in spite of a challenging international economic development.
"Our long-term growth prospects will benefit from its extensive fiscal reforms," he added.
Although the economic team is new, Santos said that they will continue to implement the programs already laid out in the 2004-2010 Medium-Term Philippine Development Plan (MTPDP). He said that NEDA, for its part, will play its role in achieving the government’s economic policy imperatives that include a stable and sustainable macro-economic fundamentals, restructuring and reforming the power and finance sectors, and boosting investment, exports and employment.
The NEDA chief said that, to achieve a sustainable economic growth that delivers benefits to all Filipinos, the government will pursue a number of measures including raising the competitiveness of key sectors such as agribusiness, small and medium enterprises, or SMEs, mining, tourism and information and communication technology, or ICT.
"This will be complemented by continuing improvements in physical infrastructure and the upgrading of skills in the labor force," he said, identifying the targeted completion of the western, central and eastern nautical highways that have cut travel time by 10 to 12 hours.
He also cited the expected reduction in passenger transport costs by 37 to 43 percent and decongest Metro Manila through the improvement of the Skyway, the C-5 extension to Sucat, the South Luzon Expressway, the Southern Tagalog Arterial Road (STAR) expressway and the widening of the MacArthur Highway.
Santos mentioned the government’s plan to introduce reforms to the educational system, including the move to credit hours spent in vocational training towards acquiring a college degree, to facilitate improvement in labor productivity.
"I am happy to note that despite a challenging international environment, economic reforms remain at the forefront of the Administration’s agenda and we are now proceeding with the second phase of our reform program," Santos said.
"We join with other agencies, as well as the local government units, the business sector and the community at large, in committing ourselves to a program of reforms that will see our economy finally take off," he added. – Ted Torres