PH Growth Will Be Faster if Govt Addresses Gaps in Good Governance and Agri

Economists have said that the Philippine economy can grow by over 8-10% if the government can fix issues regarding good governance, agriculture, and investment.

“If President Ferdinand R. Marcos, Jr. meets these three challenges, we will reach 8-10% growth in the next five years,” said the University of Asia and the Pacific (UA&P) Center for Research and Communication Director for Research Bernardo M. Villegas.

According to Villegas, the Marcos administration can target a minimum of 2-3% agricultural growth annually to hit the 8-10% gross domestic product (GDP) expansion.

Agriculture contributes over a tenth to the country’s GDP. This declined by 0.1% back in 2022 for the third straight year in a row.

This 2023, the economic managers of the country have a GDP target growth of 6-7% and a 6.5-8% goal for 2024-2028.

Villegas says that President Marcos Jr. should likewise increase the “very low:  investment rate in the country to over 30%, the average in East Asia.

“We have the worst savings rate in Asia, we’re only saving 10% compared with our neighbors who have 25-40%. We cannot get it from the local capital. (We need to) attract foreign direct investments (FDI), which he should target at $15-20 billion per year,”

Aside from this, Villegas has mentioned that the country should improve its good governance.

“(Mr. Marcos) must fight corruption. If he can meet these challenges, we can reach 8-10% growth,”

On the 2022 Corruption Perceptions Index (CPI), the Philippines sits at 116th out of 180 countries. The worst-ever showing of the Philippines was 117th in past years.

Source: Business World