By Filane Mikee Cervantes
MANILA, Sept. 12 (PNA) — Despite the less than stellar economic performance of the ‘rising star’ economy in the first half of 2015, the Philippines still has a potential to boost further the gross domestic product (GDP) growth rate in the third quarter through increased public spending on reconstruction and infrastructure developments.
“The administration should speed up the infrastructure developments,” said budget consultant Ronilo Balbieran during the 2nd Philippine Junior Finance and Investment Summit organized by Charter Financial Analyst (CFA) Society Philippines on Saturday.
Balbieran urged the government to focus on public spending to boost the GDP growth for the latter half of 2015 from its 5.3 percent under performance in the first two quarters.
“We have not increased our purchasing power,” Balbieran said.
According to Balbieran, the Philippine economy has very strong fundamentals in the form of excess savings, noting that “we have so much savings but not too much investments.”
Good governance means good economy
Balbieran commended the Aquino administration for its good governance initiatives which propelled the economic growth of the Philippines.
“For the past five years, the Aquino administration was focused on revamping the system,” he said.
Even though the GDP growth was sacrificed for a few years, the fixed, newly-hauled system meant a more stabilized momentum for the economy.
Balbieran even claimed that “the (economic) growth will continue regardless of who will be our next president because of our surpluses and excess in people.”
Road to economic golden age
According to Balbieran, the GDP should increase to 8-10 percent for eight consecutive years so that the gains and tangible effects of the economic growth will materialize and trickle down to the masses.
In the past 50 years, the average GDP of the Philippines ranged from 4 to 5 percent. However, he emphasized that 8 percent should be achieved to reach the momentum.
“We should be growing at 8 percent so Filipinos would be feeling the impact of the economic growth,” said Balbieran.
“We are on our way to the (economic) golden age,” he added.
Economic golden age equates to long boom, high growth of income, low growth of prices, and less unemployment.
The 2nd Philippine Junior Finance and Investment Summit was held at the SMX Convention Center in Pasay City with over 3,000 students and young professionals in the finance industry gathered for this one-day conference.
The summit aimed to help further their career in the field and progress in their financial status.
The conference was also broadcasted live in Cebu. (PNA)