Commentary: Economic growth is within reach

What was perceived as a rather volatile economy as yearned by a “loud” marginal sector has turned out to be more progressive and stable than it was supposed to be.

The president’s eccentric approach to economic and political diplomacy has turned off the “hard core” non-believers and politicized populace.

President Rodrigo Duterte and other more sensible leaders of this nation who are for the success of the society and this nation are willing to take the cudgels and acknowledge their duties and obligations as the trailblazers of this country.

As citizens of the only country we have, until our sovereignty is threatened, we should not take partisan stands and let elected leaders who are barely four months in office do their role and fulfill their covenant in nation building.

The wheel of leadership should take its due course in our drive for a progressive economy. Partisan and political innuendos should take a backseat in favor of a more essential goal of political and economic stability. 

Standard & Poor’s has affirmed the country’s credit rating of “BBB” with a stable outlook, attributing its decision to the country’s sound monetary policy, improved banking supervision and robust external position. 

However, S&P also expressed concern about the perceived instability and unpredictability of Rodrigo Duterte’s administration, especially in relation to a possible deterioration of the rule of law and his many hostile pronouncements that create uncertainties on his foreign policy direction.

The other side of the coin, however, is that economic indicators like Gross Domestic Product, inflation rate, unemployment remain pretty stable, despite S&P’s claim of a downside in the GDP indicators. 

Mainly, the Duterte administration is expected to pursue its thrust of economic development and the upliftment of the plight of the Filipino masses, with poverty incidence stuck at 26 percent.

Concern over the government's ability to sustain growth is a normal birth pain of any new administration. Even more so when it comes framed as a detachment from the shackles of the more than seven decades of subservience to Western influence. 

More than any other factor that may influence the local economy, foreign investors see potential in the Philippine economy because of the government's the drive to rid the country of criminal activities and government corruption. In fact, foreign business sentiments remain bullish.

Indeed, the government’s thrust of removing bureaucratic red tape has boosted the morale of businessmen. For its part, the IMF- World Bank recently restructured its growth forecast to 6.7 percent at the end of the year, higher than its previous assessment. 

Apprehensions displayed by some sectors are a mere culture shock from the abrupt deviation from a complacent and run-of-the-mill kind of life wanting in economic security, to a more productive and challenging independent economy.

We have for many decades and even centuries contented ourselves with whatever piecemeal the West gave us because we have always perceived them as superior.

The demanding international market -- illustrated by the continuous appreciation of foreign currency, particularly the US dollar, and the unabated increase in the price of oil in the world market -- signals the transition from the once dull and sleepy market to a more active and busy international transaction hub.

This is good for the economy and denotes positive sentiments not only internationally but also within the country’s boundaries.

Emmanuel J. Lopez, Ph.D. is an associate professor at the University of Santo Tomas and the chair of its Department of Economics. Views reflected in this article are his own. For comments email:[email protected]