By Entrepreneur Staff | Mar 31, 2016
The Philippine economy will see continuous economic growth in the next two years, a new report from the Asian Development Bank (ADB) revealed.
According to the Asian Development Outlook (ADO) 2016, the Philippines will enjoy a 6% and a 6.1% gross domestic product (GDP) growth for 2016 and 2017, respectively.
“While the Philippines continues to experience headwinds, including a strong El Niño weather event which has affected agriculture, as well as weak external demand, economic growth remains strong,” Richard Bolt, ADB country director for the Philippines, said in a statement.
Government consumption, which rose by 9.4% in 2015, is expected to continue with the lineup of public-private partnership (PPP) projects for the coming year, as well as the anticipated spending this election season.
ADB emphasized the growing number of unemployed youth, as they could be a potential economic driver if their unemployment is augmented. At 14.4%, it is more than double the national unemployment rate, as one in four young people are neither working nor pursuing education nor training.
The National Economic and Development Authority (NEDA) launched its long-term vision project called “AmBisyon Natin 2040” (Our Ambition) on Wednesday, March 30, which aims to serve as a guide for policy-making in the coming decades.
It revealed Filipinos want “a simple and comfortable life” or a “middle-class lifestyle” by 2040.
“With the right policies, improvements in productivity and efficiency can triple our per capita income to about $11,000 (P506,165) in 25 years. This will only be obtained if economic growth continues to be robust and inclusive,” said NEDA Secretary Emmanuel F. Esguerra in a speech, as shared on NEDA’s official Twitter account.
However, NEDA also recognized the challenges the project will meet, including surviving four administration changes in the next two decades and the country’s international commitments under the 2030 sustainable development goals.
“The role of government in realizing this vision is to enable economic growth, invest in people, and protect against instability. The Philippines can be a high-income state by 2040,” Esguerra added.
The project was started in June 2015, where 42 focus group discussions were conducted nationwide with representatives from various sectors. By January 2016, a comprehensive survey was rolled out with 10,000 respondents. NEDA also sought the expertise of ADB in producing thematic studies.