MANILA -- The business community expected to see a higher gross domestic product (GDP) growth number for the country in 2018, but noted that the economic expansion last year is certainly nothing to frown about.
“Closing the year 2018 with a 6.2-percent growth rate is a positive result, even though initial expectations were higher,” German-Philippine Chamber of Commerce and Industry (GPCCI) Executive Director Martin Henkelmann told the Philippine News Agency in an e-mail Thursday.
Henkelmann noted the Philippines’ GDP growth last year is “very impressive” considering the headwinds in both the domestic and international fronts.
“And all this, despite the challenging global trends and volatility due to trade dispute, growing protectionism and in Europe particularly the Brexit,” he said.
For the country’s largest business organization, the Philippine Chamber of Commerce and Industry (PCCI), economic growth last year was slowed down by high inflation due to soaring oil and food prices.
“These factors significantly contributed to the slowdown in household consumption, which has strong bearing on the GDP,” PCCI stated as reaction to the release of last year's growth number.
Both the local and foreign business groups are more optimistic this year with improvements in oil prices and inflation as well as policies introduced by the government.
“Inflation seems under control again, due to low oil prices, the rice tariffication and central bank measures of rising interest rates to address the pressure. Now, we are looking forward to a positive 2019. We see a strong growth rate of over 6 percent again,” GPCCI’s Henkelmann said.
PCCI also expressed hope that President Rodrigo Duterte would soon sign the Rice Tariffication Act into law to further ease food inflation.
“Budget Secretary Benjamin Diokno earlier announced that government is now geared towards deregulating most of the agriculture sector through freer importation. We fully support this move,” PCCI said.
“Especially for the processed food industry, we urge government to open up the importation of sugar to make the industry more competitive. This should also help strengthen our export sector, which suffered a slump last year. Food exports comprise about 10 percent of our total exports,” the business group added.
PCCI noted that the government should further strengthen the export sector and rethink any policies that would lessen the competitiveness of the sector. (PNA)
