2Q GDP shows growth on track, but businessmen remind gov’t of loose ends

MANILA – Businessmen today lauded the economy’s performance in the second quarter, cementing their belief that the Philippines can sail through this year with flying colors.

In a text message, Melito Salazar, Management Association of the Philippines (MAP) president, told InterAksyon.com the fast pace of growth is sustainable, as shown by the 7.5-percent expansion of the country’s gross domestic product (GDP) in the second quarter.

“I would have been worried if it had been much lower,” he said.

To keep the country’s growth at this rate, government must continue to support private industry “through a facilitative business environment.”

In addition, the government must spend more on infrastructure and poverty alleviation, as well as put in “greater effort” in eliminating corruption.

The issue of corruption has come to the fore again, with exposes on how pork barrel funds had been misused. Public outcry came to a head last Monday, National Heroes’ Day, when a largely middle class protest against pork barrel was held at the Luneta, where the shrine of the country’s national hero, Jose Rizal, can be found.

John Forbes, American Chamber of Commerce of the Philippines senior adviser, described the second-quarter GDP growth as “good news,” adding that it was “again the highest of the Asean-6 and in the face of a challenging external environment.”

“This level is sustainable and could even become higher if the country continues to improve governance and hard and soft infrastructure, more investment will follow,” he said.

Peter Angelo Perefcto, Makati Business Club president, agreed that the country’s growth rate can be sustained, provided that reforms continue.

“This positive trend will likely be sustained by industry and services sectors. Additionally, support for growth in manufacturing and agriculture will further this positive trend,” he said.

“The country can likewise benefit further if PPP projects roll out and mining revenue sharing issues can be resolved,” Perfecto said.

The Aquino administration’s Public-Private Partnership Program of late has stalled, with three big projects encountering delays. A bill meant to hike the government’s share in mining revenues, meanwhile, has yet to be filed in Congress, a year after President Benigno Aquino III laid down his new policy for the industry as contained in Executive Order No. 79.

“The business community is likewise one with government in making inclusive growth a reality so that the positive numbers can be felt more by the poor,” Perfecto said.

A number of economists have raised the issue of record growth not trickling down to the poor, as can be seen from unchanged poverty levels and stubborn unemployment. –Likha Cuevas Miel and Darwin G. Amojelar, InterAksyon.com