The Philippine Economy

[Askal82]

Originally Posted by heathcliff

So because the rosy economic data means nothing to many Filipinos who are living in dire poverty, forget the thousands of others whose lives have improved because of the improving performance of the economy? Of course the rich are getting richer because of monopolies (check your Constitution). But that doesn't mean that no opportunities have been created for many Filipinos as a result of the efforts of the government to bring in investments, create jobs and push for fiscal reform. Some of us here seem to be seeing only one side of the coin where there is suffering and not seeing the other side where not just the rich people are benefiting by taking advantage of the improving economic prospects.

and why is the income distribution very unequal despite the economic data being paraded in front of us? It simply means that economic policies are unfair because it favors people who have money.

[crappypants]

beadstrawberries and heathcliff i think are spokespersons of the govt.
just like that tootsjap is the pr relations officer of the opposition.
their job is to infiltrate the internet and feel the public pulse.

[amigo32]

hehehehe.

and you?

[death327]

Originally Posted by diz

So do we have our own television and computer maker yet?

I think we have. We manufacture computer chips... vital component of digital world.


@ the girl who committed suicide - I believe no one must be blamed here except her parents. She's only 11 years old and she's not that aware of the actual socio-political situation of the country and I couldn't find a logical connection why media had to relate her death to our economy. If we talk about desperation and hopelessness, I am pretty sure there are others who had experienced worst life than hers. The parents were/are responsible how they gonna provide hope to their children.

[diz]

Originally Posted by soulmaker27

I think we have. We manufacture computer chips... vital component of digital world.


@ the girl who committed suicide - I believe no one must be blamed here except her parents. She's only 11 years old and she's not that aware of the actual socio-political situation of the country and I couldn't find a logical connection why media had to relate her death to our economy. If we talk about desperation and hopelessness, I am pretty sure there are others who had experienced worst life than hers. The parents were/are responsible how they gonna provide hope to their children.

Now, let's not try to give the parents more grief and guilt. She shouldn't have committed suicide because she knows how hard her parents worked feed her.

Anyway, I am aware that we have a computer chip factory in Laguna? or somewhere around there. But I don't think we manufacture televisions.

[amigo32]

yes we do manufacture/assemble TV sets.
Not our own brand though.

[icarusrising]

If I were to base my view of the Philippine situation based on what the media is reporting, here are some of what I was able to gather in my limited brain-

The government announced the figures provided by NEDA that the economy is growing. That it isn't being felt by the common tao was made by another institution. The government admits the benefits of growth hasn't trickled down to Juan del Cruz. One survey points out that the masa feel they are poorer than before. Another research shows that hunger is at a record high. The peso is getting stronger against the dollar primarily because of money being sent by our ever-increasing OFWs. It has become the best performing currency in the region. In general, our exporters are suffering because of this. Those who earn US dollars would be able to buy less. Another report shows that the number of the middle class is dwindling. On the other hand, investors are upbeat. Our real estate sector is hot.

This is just the tip of the iceberg!

[le Reine]

I don't have anything to say. Our economy is hard to comprehend. Yun lang.

[adverg]

It's still a matter of self-reliance and instinct on how we will mould our life for a better living. If every Filipino people will think most especially in terms of population growth, I think we will not suffer this much. The reason why we cant felt the means of this economic growth is because of population explosion. The ratio per population growth to our economic growth is not balance since then no matter how the economic growth as it's extent to grow, it's not enough to cover up our expenditures. Sometimes, personal discipline is the key to this dream. Set our mind as other being from other nations set their mind for the concern of their national interest and growth.

[death327]

I can see only one problem here: Over-reliance of the Filipino people on the government to fulfill their dreams.

[flesh_is_weak]

isn't that one of the government's prime functions?

the reason why the government is there in the first place is to ensure the safety and happiness of the people

[le Reine]

he said over-reliance. If we would pin all our hopes and our needs to the government, we don't need a democratic one. We might as well have a dictatorship. Democracy is supposed to be participatory. So if we just wait for the government to do everything then what's the use of democracy?

[amigo32]

JFK

Ask not what your country can do for you,
Ask what you can do for your country.

[Maxxclip]

Our government should apply the culture of Japan. Hakiri!

[Ex!lE]

RP economy poised for sustained strong growth in next two years

By FIL C. SIONIL

BORACAY — The Philippines is poised for a sustainable strong economic growth for the last two remaining quarters, bringing the whole gross domestic product (GDP) to 7.2 percent backed by low interest and inflation rate regime, a rate of growth than can be maintained for the next two years at least.


"The potential for GDP is on the upswing (for 2007). We are capable of hitting seven to nine percent in 2008 and 2009 (respectively), if we play our cards right," Dr. Victor Abola, chief economist of the University of Asia-Pacific told participants to the 36th Money Market Association of the Philippines (MART) convention here.

Abola’s GDP forecast is even a lot bullish compared to the growth assumption of the Macapagal Arroyo economic team. The interagency Development Budget Coordination Committee (DBCC) placed GDP to expand between 6.1 and 6.7 percent and 6.1 and 6.8 percent for this year and in 2008, respectively.

"We’re at the beginning of a rapid growth momentum. The opportunities are there," Abola said.

Growth drivers remain largely on the hands of the robust dollar remittances from overseas Filipino workers (OFWs), which spawns consumer spending, particularly in the housing sector.



RP economy poised for sustained strong growth in next two years

Alternatively, the construction sector is a beneficiary that opens-up the floodgate for other segment of the economy to flourish as well, including job creation.

The low interest rate climate is, likewise, a catalyst to this, allowing banks to offer long-term money at a fix cost of 11 percent for a 25 year tenor, Abola explained.

For the year, he projected interest rate to settle at 3.0 percent to 3.5 percent.

However, Abola is apprehensive about the rapid appreciation of the peso versus the almighty green since it could trigger a slowdown in the activities in the housing sector.

Like most economic analysts, OFWs, particularly those returning ones, are now more focused on home acquisition. Still, Abola projected the peso to end the year at P42 and even stronger to "below P40" in 2008.

And despite mounting fears of a spiraling crude oil price per barrel, which could soar to above 0, Abola is confident the domestic economy can very well absorb the collateral negative effect of this external push.

His expectation that inflation rate will remain benign at 3.5 percent to four percent, even lower than the BangKo Sentral ng Pilipinas (BSP) and DBCC range assumption of 4.0 percent to 5.0 percent, this year mirrors this confidence.

"I don’t see inflation to raise so much from where it is right now," Abola explained.

While, the economic professor painted rosy picture of the economy for the remainder of the year and in 2008, he warned of threats lurking in the dark that could wreck havoc to a sustainable economic growth.

These risks include the sustainability in the fiscal consolidation program of the government, considering the lackluster tax collection performance of the top two revenue generating agencies of the state, the Bureau of Internal Revenue and the Bureau of Customs (BOC).

The peso appreciation, likewise, will take its toll on the revenue take of the BOC since all tariff and levies are calculated in dollars.

Using empirical data, simulations showed that the government losses about P15 billion in revenues for every P1 uptick in the value of the peso against the green.

On the other side of the equation, though, the government saves some P3 billion to P5 billion in debt service payments. But, on the overall, the government is a net loser with appreciation of the local currency, roughly around P10 billion.

Thus, he believed the economic managers have to take a comprehensive approach to stem peso from gaining further grounds.

Abola described the current level of the peso as "too low," which could "prompt" other OFWs who have yet to purchase an abode to rethink from doing so while others may be facing future defaults.

"Due to the strong peso, we’re in for a big bust," he predicted.

The main culprit in her death is that she had been born by irresponsible parents. Her parents just multiplied without thinking if they can keep and provide for a big family or not. The stupid oppositionists like oscar cruz is again making false accusation.

[Sinjin P.]

Finally, one global list where we’re
good: bridging the gender gap

By Cai U. Ordinario
Reporter

THE Philippines remains to be one of the world’s top women-friendly nations and is the only lower-middle-income country included in the top 10 of the Gender Gap Index (GGI) for 2007, where it ranked sixth overall.

The top 10 countries in the GGI are led by Sweden, which was ranked first, followed by Norway, Finland, Iceland, New Zealand, the Philippines, Germany, Denmark, Ireland and Spain.

The index, which is in the World Economic Forum’s (WEF) recently released Global Gender Gap Report, examines four critical areas of inequality between men and women.

These areas are economic participation and opportunity, which measures the outcomes on salaries, participation levels and access to high-skilled employment; educational attainment, outcomes on access to basic and higher level education; political empowerment, outcomes on representation in decision-making structures; and health and survival, outcomes on life expectancy and sex ratio.

The Philippines ranked second in the subindex on economic participation and opportunity for women and 14th in political empowerment.

The country also ranked first in educational attainment along with Australia, Belgium, Belize, Denmark, the Dominican Republic, France, the Honduras, Ireland, Jamaica, Lesotho, Luxembourg, the Maldives, Poland and the United Kingdom.

The Philippines also shares first place in health and survival with Angola, Argentina, Austria, Belize, Brazil, Cambodia, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, El Salvador, Finland, France, the Gambia, Guatemala, the Honduras, the Kyrgyz Republic, Latvia, Lesotho, Madagascar, Mauritania, Mauritius, Mexico, Mongolia, Panama, Paraguay, the Slovakia, Sri Lanka, Thailand, Trinidad and Tobago, Uruguay, Venezuela and Yemen.

In Asia, the WEF said the Philippines and Sri Lanka, which is at 15th place, remain the only countries included in the top 20. Last year, the Philippines was also in sixth place and Sri Lanka was 13th.

“The Philippines is once again the only country in Asia to have closed the gender gap on both education and health and is one of only six in the world to have done so. The Philippines’s scores on political empowerment improved further, as did some of its economic indicators, such as estimated income, labor-force participation and income equality for similar work,” the WEF said.

WEF said that this year, the averages across the subindexes for 115 countries covered in both 2006 and 2007 reports showed that globally, progress has been made on three of the four critical areas.

Overall, countries in the survey showed improvements in educational attainment, which rose to 91.60 percent from 91.55 percent; political empowerment, rising to 14.15 percent from 14.07 percent; and economic participation, to 57.30 percent from 55.78 percent.

The gap in health and survival worsened, though: dropping to 95.81 percent this year from 96.25 percent last year.

The report said the 2007 GGI raised five key concerns, topped by the great need for progress in reaching equality among men and women. The report said the highest-ranking country has closed a little over 80 percent of its gender gap and the lowest-ranking has closed only a little over 45 percent of its gender gap.

Other concerns are identifying the possible role models in terms of dividing meager resources equally between men and women; how far each country is toward achieving equality between the sexes; revealing progress and declines in short periods of time; and the correlation of gender gap and competitiveness, thus encouraging countries to include gender equality into national priorities.

[beads_strawberries]

It's good that here in the Philippines, we value the elders unlike in some countries where an old age only means they have to be put in some nursing homes. Here, we value our grandparents. I even heard we have grandparent's day celebrated annually.

I think the medical field is also developing geriatric medicine to show that we are not neglecting the elderly. Come to think of it, the best place to retire is here in the Philippines.

[jonno]

Kudos to Filipino women!!! They should be rewarded with deep, good appreciation for all the work they do. That's why many Filipino men also work long and hard day and night.

[amigo32]

GMA should be rewarded