THAT OUR economy is expected to grow by 7.4 percent this year is good news. The challenge will be to facilitate a similarly high growth rate for 2023 and beyond.
Individual projects can help. That the Korea Exim bank is prepared to fund the Panay-Guimaras bridge project is a good start. There is, however, a substantial synergy that could be achieved by proceeding with the Guimaras-Negros work. The completion of Panay-Guimaras-Negros would produce huge additional benefits since the implementation of land transportation between Panay and Negros involves a large population.
Growth rates can be achieved by having a better-educated populace. I am a fan of ALS – the Alternative Learning System administered by the Department of Education. With more proactive marketing, ALS could engender a workforce able to undertake greater responsibilities. After all, ALS recognizes that many Filipinos do not achieve their full potential in the traditional education system but can flourish in later life if supported by a well-organized system of ‘second chances’.
A recent World Bank survey has found that the Philippines has an extremely high income inequality. This inequality would be reduced if those who did not progress beyond Grade 6 (and many by not even get this far) are able to make progress later on in life.
BBM has often mentioned poverty reduction as a top priority for his presidency. This will become increasingly difficult to achieve.
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The nation’s indebtedness has reached P13.52 trillion. More significantly, the debt-to-GDP (gross domestic product) ratio has increased to 63.7 percent, the highest since 2005.
Finance Secretary Benjamin Diokno says. ‘With sustained and strong growth, we expect the debt ratio to fall to about 50 percent by 2028.’ I hope he is correct, but unfortunately this must be regarded as an optimistic scenario.
The pressure to increase infrastructure spending, as Budget Secretary Amenah Pangadaman asserts, will steadily increase and will remain at five to six percent of gross domestic product until at least 2028.
Debt servicing will become an increasing challenge./PN
