By Azer N. Parrocha
MANILA, Feb. 17 (PNA) — The National Economic and Development Authority (NEDA) on Monday announced that despite back-to-back national disasters last year, the Philippine economy was still on track with its targets.
At a Palace briefing, NEDA director general Arsenio Balisacan explained that although economic targets were still on track, what the economy still lagged in was with respect to desired social outcomes.
“GDP (gross domestic product) growth targets for 2014 to 2016 would be greater if not for those natural disasters,” Balisacan said.
“Progress in poverty reduction can easily be wiped out by natural disasters,” he added.
The NEDA chief said the economy expanded by 7.2 percent, which was an improvement from the 6.8 percent achieved in 2012.
He noted that unemployment rate, however, has remained within the targeted range of 6.8 to 7.2 percent and that the bigger challenge was reducing the underemployment rate which is still close to 20 percent.
As for the ratio of the country’s investment to gross domestic product, it has came close to its target of achieving 22 percent by 2016, Balisacan said that although it was still lower compared to Asian neighbors’ results.
He said that the process of making provinces resilient will protect the development outcomes, while government problems like poor infrastructure, high cost of doing business need to be addressed to attract investors.
“Good governance is an effective platform upon which strategies should be implemented,” Baliscan said, adding that although economic growth was necessary, it was not sufficient for poverty reduction.
“Investments must continue to rise for the country to grow,” he added, assuring that reducing the cost of doing business in the country will continue to be a priority.
Balisacan explained that while growth opportunities may be present, the poor cannot participate in the growth process.
“The poorest families are being left behind, perhaps because the growing sectors do not need the services the poor can provide,” he said.
“In reducing poverty, the government will tailor fit the interventions that matter most to the poor,” he said. “Promote higher growth to create more employment opportunities.”
He also said that the best approach to reducing poverty for good was to “keep sustaining a solid growth” and that poverty reduction should be measured based on concept that poverty is “multidimensional”.
“The key is to sustain solid growth, to go for long-term and enduring sources of poverty reduction,” Balisacan said.
He also said that the ultimate goal of updated Philippine development plan is still inclusive growth. (PNA)