EDITORIAL - Sustaining growth

The nation welcomed yesterday news that the economy grew by 7.1 percent in the third quarter. Economists noted that it was the fastest GDP growth in Asia and the highest since 2013.

In fact the nation has enjoyed sustained growth for several years now, with gross domestic product growing by an average of six to seven percent since 2012. The Aquino administration can take part of the credit for the latest third quarter growth figures, which have also been helped along by the optimism and business confidence that typically accompany a peaceful transfer of power in this country.

Benigno Aquino III had said he wanted to make it easier for his successor by providing the foundations for sustained growth. President Duterte has acknowledged the strong macroeconomic fundamentals that he inherited. His challenge is to build on the gains and sustain the momentum. To achieve this, he may want to listen to the voices of those who support his administration but have started expressing concern about some of his policies and pronouncements.

Duterte is seen to provide “stronger leadership,” according to businessmen, but they say that GDP growth can be sustained better and even accelerated without the “noise” from the administration. Unnecessary fights with the international community are also threatening to derail the momentum.

The administration still has challenging tasks ahead. It must create jobs, improve infrastructure, make doing business easier, boost agriculture and tourism as well as stimulate manufacturing. It must shepherd a difficult transition for Filipino workers from voice to knowledge BPOs as jobs in business process outsourcing are made redundant by technology. Growth must be made equitable.

President Duterte hit the ground running in the peace process with Islamic separatists and communists. He also continues to deliver on his campaign promise to be tough on crime. But the bloodshed, the lack of accountability, the weakening of the rule of law and concerns about an endless spiral of violence are giving his war on drugs mixed reviews.

Combined with the continuing kidnappings by the Abu Sayyaf, the deadly violence is giving the country a lot of negative reviews overseas that like it or not are affecting business confidence, threatening the sustainability of economic gains. The positive economic news for the third quarter should prompt a reassessment of priorities in the new administration.