Economist: Next Phl leader must show infra commitment

CEBU, Philippines - Although the economic growth of the Philippines will not depend solely on who becomes the next President, but his/her commitment on infrastructure development will be very crucial in sustaining the country’s economy.

Economist Bernardo Villegas said in a recent economic briefing that it is important for the Philippines to have a leader that has serious commitment towards boosting the infrastructure.

"Choose a President who will solve problems in infrastructure," said Villegas reiterating the important role of infrastructure to economic growth.

However, he clarified that the Philippines will achieve a moderate and encouraging growth in the near term, regardless of who gets elected. If infrastructure were to be given utmost attention, the Philippines' will accelerate in achieving its projected position as the "New Tiger in Asia."

The next 20 years will be a good economic story for the Philippines, Villegas assured, explaining that within this period the country could grow within the range of six to seven percent GDP.

Drivers will continue to be the growing outsourcing sector, overseas Filipino workers' remittances, tourism and the recovery of the manufacturing industry in the country.

Expansion of these sectors, which will strengthen the economic backbone of the country, is inevitable regardless of who will be elected as President next year.

However, this positive outlook for the economy should be complemented with the right infrastructure support, tourism for instance could bring in more revenues and fatten the economic platform of the country if infrastructure is fixed and advanced.

"Even if we elect Vice Ganda, the six to seven percent (growth) is guaranteed," he said.

Significantly, Villegas emphasized that the Philippines need someone who is good at executing things.

"We need someone who will unleash all the public-private partnership (PPP) and government projects. Because if all of these infrastructure projects will be implemented we can grow by eight to 10 percent from 2016 onwards," he added.

According to Villegas, the country is politically and economically stable compared to its neighboring countries, like Thailand and Indonesia that is facing troubles on devaluation and Thailand's sick and aging leader.

In 2014, the Philippines registered $28 billion in overseas remittances from more than 10 million overseas Filipinos. The remittance growth is growing at three to five percent.

Likewise, the outsourcing industry, on the other hand, achieved $18 billion earnings that employed 1.1 million well-paid and highly educated workers. (FREEMAN)