Int'l Political expert says Philippine Economy Continues to Grow Under President Duterte Government - The Daily Sentry

Monday, July 2, 2018

Int'l Political expert says Philippine Economy Continues to Grow Under President Duterte Government

Adam Garrie | President Rodrigo Duterte | Photo credits to Rappler
There's no stopping the administration of President Rodrigo Duterte from pushing to build on the country's economic gains for the sake of all his Filipino people.

"Under Duterte, the Philippine economy continues to grow in a manner consistent with Keynesian trends which indicate that in an economy undergoing rapid economic growth and development in which employment and wages are up –  inflation will necessarily rise."

This how the renowned Geopolitical expert Adam Garrie, describes the country's current economy under the administration of President Rodrigo Roa Duterte.

In his article entitled "Under Duterte The Philippine Economy Continues to Grow", Garrie a well known global specialist said that despite those of the relentless propaganda pitched against Duterte on the issue of his intensified campaigns to crack down illegal dr*gs and crime, and its way of handling the disputed waterways in the South China Sea has" has failed to dent the Philippine leader’s popularity which continues to defy the cynics who campaign for the beloved leader’s ouster."

President Rodrigo Duterte | Photo credits to Concept News Central 

Garrie who is also known for his pragmatic and well-founded write-ups had supported his article with Statistics report from Trading Economics which clearly shows that the country's economy “grew an annual 6.8 percent year-on-year in the March quarter of 2018“.

Check further details stated below that supports Garrie's statement: tradingeconomics

"Both investment and government spending rose faster while private consumption and exports continued to increase. In the three months to March, gross domestic capital formation increased by 12.5 percent, accelerating from a 8.3 percent growth in the previous quarter. Investment in intellectual property products grew by 12.7 percent, followed by durable equipment (10.1 percent); construction (8.9 percent), and breeding stocks & orchard development (4.2 percent)."

"Government expenditure rose 13.6 percent, faster than a 12.2 percent growth in the December quarter. Meantime, household consumption expanded 5.6 percent year-on-year, compared to a 6.2 percent increase in the fourth quarter."

"Exports increased by 6.2 percent, following a 20.6 percent rise in the fourth quarter. Sales of goods rose 2.9 percent (from 12.2 percent in the fourth quarter) and those of services went up 17.9 percent (from 14.5 percent). Imports rose by 9.3 percent, following a 18.1 percent rise in the preceding quarter."

"On the production side, the services sector advanced 7.0 percent, compared to a 6.9 percent growth in the three months to December. Growth in the sector was supported by public administration & defense, compulsory social security (13.2 percent); other services (8.8 percent); financial intermediation (7.6 percent), and transport, storage & communication (6.4 percent);trade and repair of motor vehicles, motorcycles, personal and household goods (6.1 percent), and real estate (4.7 percent). 

The industry sector expanded 7.9 percent, following a 7.0 percent growth in the preceding quarter. Agriculture, hunting, forestry and fishing rose 15 percent following a 2.4 percent expansion in the previous period. Construction grew (9.3 percent), followed by manufacturing grew (8 percent), and electricity, gas and water supply (6 percent). Mining & quarrying went up by 4.5 percent, following a 5.4 percent rise in the December quarter."

"The Philippines has a 7.0-8.0 percent growth target in this year. Over the next 6 years, the government is targeting GDP growth within a 7 percent to 8 percent range annually“.

Garrie also further stated that Duterte's Infrastructural development project dubbed as Build, Build, Build has seen successes with its recently completed project, the new passenger terminal at Mactan-Cebu International Airport II (MCIA).

"Duterte’s wide ranging infrastructural development project known as ‘Build, Build, Build!’ has seen further successes with the Mactan-Cebu International Airport Project on track to welcome passengers to a fully functional modern airport in less than a year. With employment rates high while wages continue to grow, the economy is now in good shape to take advantage of The Philippines’ status as the world’s top investment destination." Garrie said

He also shares his prowess on how the government should do to inorder for the government attracts more foreign investments.

Below is an excerpt of Garrie's statement:

"The key from here on out is to attract the right kind of investment from abroad. While injections of capital remain important to any growing economy, what is more necessary for a country like The Philippines is to seek and obtain foreign investment designed to facilitate a sustainable economic growth model through direct stimulus aimed at infrastructure using a bottom-up approach."

"The mega-projects of ‘Build, Build, Build!’ remain crucial, but equally crucial are cost effective mechanisms to improve existing streets and buildings throughout the country’s major cities. While the development of New Clark City remains an important draw for investors, refurbishing existing buildings throughout Metro Manila and other major centres should be simultaneously prioritised."

Public-private partnerships which invite foreign companies to help rebuild and refurbish entire city blocks will ultimately be an incentive for future investment in major Philippine cities and will also help to boost tourism. In exchange for investments into the refurbishing and “beautifying” of existing buildings currently in both public and private ownership, both domestic and foreign companies can be offered major tax incentives for new or existing business activities in the country. 

Likewise, any and all derelict buildings or plots of land in urban centres should be given to foreign investors so that they can immediately begin to develop currently useless property into revenue generating endeavours that will be beneficial to the country for year’s to come.

This win-win model allows the government to reap the long term advantages of having large sections of metropolitan areas redeveloped at no cost, while in future years, these redeveloped buildings and public spaces will also be a draw for future business activities.

President Rodrigo Duterte | Photo credits to Asia Times

Simultaneous to this, The Philippines should work on intensifying talks to create new free trade initiatives which can be achieved in conjunction with fresh injections of foreign investment from new partners.

A weak PHP when combined with strong domestic growth represents a time tested Kensyian model for prosperity. Turkey, whose economy continues to grow at a record pace, in spite of inflation fears that were recently brought under control because of a moderate intervention by the state bank which recently helped to create a more uniform set of interest rates, can be favourably compared to the Philippine economic revival that is taking shape under Duterte.

Because of this, The Philippines can use the weak PHP to begin exporting local goods to countries like Russia and in so doing, set the stage for a wider free trading agreement between The Philippines and the Russian led Eurasian Economic Union that has just signed a free trade agreement with China.


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Source: eurasiafuture