SO far the recent performance of the local economy appear resilient according to the recent report by the International Monetary Fund (IMF). IMF retained The Philippine economic growth forecast at 5 percent for 2011 and 2012, after taking into account the potential impact of both favorable and unfavorable factors.
In its latest forecast, IMF also said that the global economic recovery is gaining strength, with world growth projected at about 4.5 percent in both 2011 and 2012, but unemployment remains high, and risks of overheating are building in emerging market economies like the Philippines.
The buoyant activity and growing confidence from international markets have promoted favorable prospects for 2011-12 in the domestic economy. However, disruptions to oil supply pose new risks to the recovery. Oil prices have shot up because of unrest in the Middle East. Disruptions so far would have only mild effects on economic activity but, given falling spare oil production capacity, risks are not lagging behind.
On the other hand, the devastating earthquake and tsunami that had struck Japan, even after extracting a terrible human toll, would only bring a limited microeconomic impact to the country.
According to the report, high unemployment and commodities prices pose major social concerns and that more progress is urgently required on fiscal and financial repair and reforms to help the country keep up with the global demand.
The time is ripe for the Philippines to take advantage of the flourishing market and gain ground in Asia.
Philippine economic managers are currently in China to meet with Chinese government officials and brief leaders of the Chinese business and investment community on the country’s private-public partnership (PPP) projects. The government’s economic managers will be in Beijing and in Shanghai to hold separate country briefings to present investment opportunities in the country, including the PPP program. In the private sector, the team will have meetings with about two dozen Chinese state-owned enterprises and private companies.
Meanwhile, the Department of Agriculture is optimistic about the export potentials of the country. The government is negotiating for the export of meat products and vegetables to other Asian countries hoping that it could seal several deals soon.
The Philippines being the only Southeast Asian country not affected by bird flu virus, is capitalizing on supplying more of its chicken meat products to Japan and South Korea. The hog raising industry also has very good export prospects, after receiving a certification from a Paris-based certifying body declaring the country as Foot and Mouth Disease (FMD)-free (Foot and Mouth Disease). It could open up future shipments of pork overseas.
Furthermore, the Department of Trade and Industry (DTI) has generated a $42 million dollar investment pledge for the country after a successful venture to India. The investment mission garnered three energy projects that include include two 20-megawatt stand-alone liquefied natural gas (LNG) power plants in Tawi-Tawi and in Cagayan as well as a 1.5-megawatt mini hydro electric power project in Abra, and a pharmaceutical packaging project.
As a developing nation, the Philippines although still suffering from poverty, proves its potential for development by providing necessary reforms that are undertaken rapidly. Despite some positive social and economic indicators, the government is yet to identify the full extent of the country’s economic potential. But with thriving democracy and capitalistic attitude, the country is not far from really achieving economic stability and growth that is dynamic enough to keep the country in pace with its Asian neighbors.
(www.asianjournal.com)
(Las Vegas April 14-20, 2011 Sec A pg.6)
