Soar High Philippines

Soar High Philippines

by: Ruel De Gracia

Philippine economic development has been very fast lately. According to National Statistical Coordination Board (NSCB) that the domestic economy accelerated in the second quarter of 2012 to 5.9 percent from 3.6 percent recorded the previous year boosting the first semester growth to 6.1 percent from 4.2 percent. This positive result is brought by pliant services sector as the main driver of growth supported by the sustained growth of manufacturing and the rebound of construction.

The economy of the country today is performing well. This is an indication that there is a greater chance that the Philippines can imprint on the global growth for the years to come.

Recently, an economic oriented journal, Market Watch has concluded that Philippines once again become the New Tigers together with Indonesia. This only shows that the present administration is considering much about the stability of our economy. The business here in our country is doing well which contribute to the positive assessments to the economic performance. Last Friday, the Philippines Stock Exchange Index market is also doing well. The peso value sets 30% high.

It is estimated that the continued inflow of remittances from our overseas workers pushed the growth of Net Primary Income from the rest of the world (NPI) to 4.5 percent from a decline of 1.1 percent in 2011 thrusting the Gross National Income (GNI) to accelerate to 5.6 percent from 2.4 percent.

The government's plan for coming years to come is to reduce public debt to 49.4% of GDP (2011 est.), unemployment rate to 6.8- 7.2%, poverty incidence to 16.6% which is a strong sign that we can say that our economy will eventually surpass the economic problem.

Philippines economic development is also result of agricultural products, which includes corn, sugarcane, pineapples, coconuts, bananas, rice, cassavas, mangoes and pork, eggs, beef and fish. Major industries that contribute to economic development of Philippines are wood products, electronics assembly, food processing, footwear, garments, pharmaceuticals, chemicals, petroleum refining and fishing.

One of the highlights of the present economy is the banking sector. BDO Unibank Inc. the biggest bank in the country by total deposits and assets under management as of the end of 2011, according to its annual report. A full-service universal bank, BDO is a subsidiary of SM Investments Corp., a conglomerate owned by Chinese-Filipino tycoon Henry Sy. The bank’s profit rose 15% in the first half of 2012 from the same period a year ago. Other major Philippine banks include Metropolitan Bank & Trust Co. and Bank of the Philippine Islands, or BPI. There was also a “steady rise” in investment as indicated by dipping savings and increasing bank lending. In a report released by Moody said that the resiliency of the services sector is also a factor for the Philippines’ stellar economic performance, which has been mirrored in most countries comprising the Association of South East Asian Nations (ASEAN).

The present administration has vowed to focus on improving tax collection efficiency, rather than imposing new taxes, as a part of its good governance platform. The economy still faces several long-term challenges, including reliance on energy imports and foreign demand for overseas Filipino workers.

Truly Filipinos is happy enough despite of the problems that we faced. The Department of Tourism, spearheaded by Secretary Ramon "Mon" Jimenez, has just launched today the new campaign line to boost the tourism industry in the country. As a great start for 2012, the campaign aims to get tens of millions of tourists by 2016. Developed by BBDO Guerrero, the slogan tag as It’s More Fun In The Philippines. The DOT hopes to increase the number of tourist arrivals in the country yearly to reach 10 million by 2016. The Philippine government need to boost the annual international arrivals to 10 million by 2016, from 3 million today. The local tourism industry targets 4.6 million tourists by the end of the year. The government said that if the quota for 2012 would be reached, this would mean an additional 1.5 million tourists, higher than the previous record.

Poverty and employment are among the problem that the government should give much attention. There are more people that are hungry. And with the current problem with international economics, more people are losing their jobs. Steadily rising inflation has contributed to the erosion of the value of the minimum wage. In line with problem the government implmented three rate cuts this year, putting the benchmarks 75 basis points lower to record-lows of 3.75 percent and 5.75 percent for overnight borrowing and lending, respectively to focus on the poverty line incidence giving the poor sustainable jobs to at least lift them from the unfavorable conditions in living.

The September 25, 2012 report by S&P’s eighth positive credit rating action under the Aquino Administration. S&P upgraded Philippine creditworthiness on July 4, 2012, assigning it a “BB+” rating with stable outlook, or a notch below investment grade, and affirming Fitch Ratings’ credit upgrade in June, 2012. Moody’s Investor Service upgraded the country’s rating to “positive” from “stable” in May, 2012. S&P, Moody’s, and Fitch Group are the Big Three credit rating agencies.

Adding to the bull case for the Philippines is a favorable slate of country rankings. Data from the Heritage Foundation indicate that when metrics such as economic freedom, freedom from corruption, land freedom and related metrics are combined, the Philippines scores better than other Southeast Asian economies region a report said.

The overall economic condition at present is practically stable and it’s an indication that the government together with the people are helping each other to come with a greater and better outcome for the good of our economy and most all to our country.