MANILA, Philippines - The head of the National Economic and Development Authority (NEDA) said the country’s gross domestic product (GDP) could grow by a slower six percent, to 6.5 percent rate this year, barely hitting the lower end of government’s target.
NEDA director general and Socioeconomic Planning Secretary Arsenio M. Balisacan said the Philippine economy would likely expand within the lower end of government’s full year forecast of 6.5 – 7.5 percent.
“The higher end is already very challenging,” Balisacan said at a forum sponsored by the Philippine Economic Society.
Nonetheless, he said government would remain focused on a seven to eight percent growth rate in GDP every year, for the next two to three years.
“That is necessary to realize real sustainable and inclusive growth,” he added.
For 2015, the economic growth rate is forecast at seven to eight percent, and at 7.5- to 8.5 percent in 2016.
Unemployment rate is expected to improve to 6.8 percent from the average seven percent in the past few years.
Balisacan said this will improve to 6.7 percent next year to 6.6 percent the following year.
The underemployment rate will be slashed by one percentage point per year, or from20 percent of employed to 17 percent by 2016.
The poverty incidence as a percentage of population is likewise targeted to improve from 25.2 percent in 2012 to 19 percent by 2016.
“This is still a tall order with no slack time,” Balisacan said. “Industry sector is projected to grow the fastest, while services is expected to remain robust.”
In the next five years, the Philippines is on track to be counted among the upper middle-income countries
In the immediate term, the economic planning secretary said NEDA has identified problems in implementing infrastructure projects that need legislative action.
Specifically, the proposed amendments to the Build-Operate-Transfer Law and amendments to Republic Act (RA) 8974 – An Act to Facilitate the Acquisition of Right-of-Way, Site or Location for National Government Infrastructure Projects and for Other Purposes.
Government is also producing physical framework plans covering major areas in the country.
“This will make the public infrastructure program more predictable, and the private sector can then plan accordingly. To date, we already have the transport road map for Metro Manila and its surrounding environs, with the support of JICA,” Balisacan said.
NEDA is also advocating the passage of the National Land Use Act, which aims to institutionalize land use planning as a means for the rational and just allocation, utilization, management, and development of our country’s land resources; and to provide policies and mechanisms for determining and evaluating appropriate land use.