The Philippines is no longer in danger of falling into a recession.
National Economic and Development Authority (NEDA) Deputy Director General Rolando Tungpalan made this brave announcement in a press briefing in Malacanang today, saying the economy will further improve with positive economic forecasts from the United States, the European Union (EU) and Japan.
“The economy has demonstrated greater resiliency,” Tungpalan said, noting that the United States and the EU are moving out of recession.
The US Federal Reserve, according to him, has also upgraded its outlook on the US economy from a contraction of 1.3 to 2 percent to 1 to 1.5 percent.
Tungpalan said there are transparent evidence of positive developments in the economy that included the latest data on overseas Filipino workers’ remittances showing continued growth, contrary to the earlier expectations of the Bangko Sentral ng Pilipinas.
OFW remittances in May this year grew 3.7 percent, debunking predictions of several analysts.
Tungpalan mentioned several other external factors to back up the government’s optimism on economic growth such as the expansion of the retail trade sector, specifically the growth in car loans by the banks and the expansion of major malls.
Auto loans grew 48 percent in May, up from the negative 6.6 percent growth last year.
Tungpalan noted a Department of Labor and Employment report that more jobs are now available in the information and communication technology (ICT) sector as well as reports from companies that they have started rehiring previous employees.
Add to this the positive outlook rating of Moody’s on the economy, he said.
Tungpalan forced that the government “expects positive growth but added that adjustment to this year’s 0.8 to 1.8 percent target growth will only be made with the release on Aug. 27 of the second quarter gross domestic product or GDP.
The NEDA official said the government will depend on the ICT and tourism industry, among other sectors, to boost the economy.
Tungpalan said the call center sector is a “bright spot” for new jobs and investments with the emergence of ICT hubs outside Metro Manila such as in Metro Laguna, Iloilo, Bacolod, Cagayan de Oro and Lipa City.
He also said the government will also look beyond voice calls and look for the opportunities offered by non-voice such as animation.
Tungpalan noted that the President’s Comprehensive Livelihood and Emergency Employment Program or CLEEP “continues to contribute to the resiliency of the economy.”
He also noted that China’s impressive 7.9-percent growth in the second quarter provides a huge opportunity for the Philippine economy in terms of expanding trade and investments.
China is among the major trading partners of the Philippines and with relations between the two countries continuing to be very strong, the country hopes to ride on the strength of China to move the economy forward.
“China continues to post strong growth. We reiterate the importance of engaging China for more trade, investment and tourism,” Tungpalan said.
However, this good news may be dampened by some threats that include water crisis, as it was forecasted that there will be drought later this year due to unusual weather patterns.
He added though that the President has instructed the Department of Agriculture (DA) “to soften expectations” as “water for food production is above (daily) water consumption.”
In today’s cabinet meeting, Tungpalan said the President ordered DA to “look at measures (to be undertaken) especially in the area of water management.”
This article is distributed by www.Cebu-Philippines.net. An up-to-date guide to Cebu Province Philippines and the Philippines. Providing current and relevant information about visa, airlines, hotels, resorts, Philippines economy, scuba diving, travel, health and wellness.
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