Economy may grow 7-10% over next 10 years - economist

MANILA, Philippines - The Philippine economy could grow by seven percent to 10 percent within the next 10 years as it reaches its tipping point, an economist said.

University of Asia & the Pacific (UA&P) economist Bernardo Villegas said that the country’s gross domestic product (GDP) may grow by seven percent to 10 percent in the next 10 years as the country reaps the result of over 25 years of slow reforms.

He said this may happen on the back of a stable democracy, strong macroeconomic fundamentals, labor peace and the high rate of savings from overseas Filipino remittances.

The continued rosy performance of the local bourse, being one of the best performing stock markets in the world is also a positive trend, Villegas said.

At the same time, Villegas said that weaknesses and challenges remain. These include red tape and bureaucracy, inefficient infrastructure, the high rate of poverty in the country and the country’s vulnerability to natural calamities such as the La Niña weather disturbance.

Villegas said there are also sunrise industries that would continue to boost economic growth.

These include health care and medical tourism, education, construction and real estate as well as logistics and retailing.

The seven key industries, meanwhile, are agribusiness, business process outsourcing, creative industries, infrastructure, telecommunications, manufacturing and logistics, mining, tourism and medical travel and retirement.

His fellow economist Vic Abola said that the economy is expected to accelerate to a growth of seven percent in the second quarter of the year and hit a full-year growth of six percent to seven percent.

Drivers will be the recovery of agriculture and industry sectors and the steady growth of services but noted that threats to this growth remain, he said.

The official growth forecast range is five percent to six percent.