CEBU, Philippines - Despite the economic uncertainties of the United States and Europe, the Philippines is seen to stay on the growth track as Asia becomes the darling of the world market nowadays.
Economist Bernardo Villegas of the University of Asia & the Pacific (AU&P) said that the Philippines should prepare and take advantage of the stronger economic growth outlook within the region, and that investments in human resource, infrastructure, SME (Small and Medium Enterprises (SMEs), and amendments of foreign investment policies should be given utmost attention.
The Philippines is part of the “Emerging Engines of Growth” in the world based on the IMF (International Monetary Fund) World Economic Outlook, together with Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, South Korea, Turkey and Vietnam.
He said the United States’ economic downturn is a “hopeless situation,” it might be up for another round of “economic recession”, with ballooning debt, upcoming election jitters, among other problems faced by the Obama administration.
Likewise, Europe “is definitely suffering”, he said countries like Portugal, Ireland, Italy, Greece and Spain, will continue to embrace economic pains, and “there’s no way” these countries can recover in the next five years.
“Europe is in trouble,” Villegas said emphasizing that the economic opportunity spotlight is now directed to the emerging Asian economies including the Philippines.
In an economic briefing hosted by the UA&P Cebu Alumni Association, Villegas recommended businessmen to change “travel patterns” in the next few years, to introduce the new generation to the world’s next wave of economic tigers within the Asia Pacific.
“Forget Florida, Las Vegas. Instead introduce the new generation of future businessmen to destinations like New Delhi, Mumbai, South Korea,” he said as these areas provide huge business opportunities in the next 10 to 20 years.
Still, there is no doubt that the United States is still the most powerful economy in the world right now, but the trend has slowly changing as in 2010, China overtook Japan as the second strongest economy in the world.
He said although US is suffering, it will take about 10 years or less for China to snatch the position of the United States, as the number one strongest economy in the world.
Villegas, a highly respected economist in the Philippines said that the Philippines should immediately grab the opportunities to ride on with the rosy prospects in the Asian region, via increasing investor’s confidence as a result of successful elections; maximize liquidity of the financial sector; expanding the mining and energy investments, spending heavily on infrastructure, attract more BPO investments, develop the medical tourism sector and build retirement villages, among others.
Aside from the large consumer base in the Philippines, which one of the factors that cushioned the country’s economy from severely affected from the weakening of giant economies like US and Europe, the sustaining remittances of the OFWs (Overseas Filipino Workers) shields the economic strength of the country.
The Philippines will also get its strength in the seven key industries, such as Agri-business, BPO, creative industry, infrastructure (airports, power, roads and rails, seaports, telecommunication, water), manufacturing and logistics, mining, tourism, medical travel and retirement. - THE FREEMAN