Business groups bullish on growth momentum

MANILA, Philippines - Business groups yesterday welcomed the strong growth of the Philippine economy in the third quarter of the year, but challenged the current administration to sustain the momentum.

“The momentum the Duterte administration enjoys is certainly owed as well to the previous administration, but sustaining it will depend largely on how they pursue the growth drivers. They can, in fact, do much better given the perceived stronger leadership,” Makati Business Club executive director Peter Perfecto said.

Perfecto said the growth momentum could be sustained if the government could limit the “noise” and focus instead on maximizing the competitive advantages from the nation’s young workforce.

Likewise, the MBC official also urged the government to tap on the potentials of agriculture, pursue tax reform, deliver on infrastructure development, and build peace in Mindanao and across the country.

“The 7.1 percent gross domestic product (GDP) growth achieved should be seen by the government as a clear signal that it is high-time to also adopt an all-out of government approach, not only against illicit drugs and crime but also on the key drivers of continued and expanded economic growth such as services, infrastructure, tourism, agriculture, manufacturing and public-private partnerships,” Perfecto said.

For the foreign business chambers, continuing a healthy relationship with international partners is essential in ensuring a sustained economic growth in the coming years.

European Chamber of Commerce and Industry of the Philippines president Guenter Taus said the country’s short and medium term growth can be sustained on continued job creation and higher infrastructure spending.

“Government needs to continue to work with the international foreign business community to continue investments in the manufacturing as well as BPO industry,” Taus said.

For John Forbes, senior advisor of the American Chamber of Commerce and Industry of the Philippines, the third quarter GDP growth showed the soundness of the first point of the Duterte administration’s socioeconomic agenda which is to “maintain current macroeconomic policies including fiscal, monetary and trade policies.”

Forbes said the Philippines has been able to maintain a six to seven percent GDP growth rate since 2012, one of the highest in Asia.

“With implementation of the other points, as well as the forthcoming Philippine Development Plan, the economy could grow even faster. For the latest quarter we were most encouraged by the much faster growth in the important agricultural sector but most discouraged by the 29 percent in nickel mining,” he said.