The country is likely to meet the targets set for the industry and services sectors under the Philippine Development Plan (PDP) 2011-2016, the National Economic and Development Authority (NEDA) said over the weekend.
In a statement, the agency said it is “generally optimistic” of achieving its 2014 PDP goals for the industry and services (I&S) sectors.
“Bright prospects are also seen for the achievement of end-of-plan targets in the financial sector,” it added.
Specifically, the NEDA noted that targets for the following indicators in the I&S sectors are highly likely to be met: an improvement of gross value-added in services, its Philippine Innovation Index, the Doing Business global ranking, labor productivity, intellectual property products expenditures, level of consumer awareness, and services exports.
“These indicators are deemed significant in monitoring progress towards an improved business climate, higher productivity and innovative capacity, enhanced consumer welfare, and expanded market access in the industry and services sectors,” the NEDA said.
This pronouncement is based on an ongoing assessment and validation conducted by the Planning Committee on Economic Development, which the agency said met last Sept. 3.
The committee noted that targets in the objective to increase access to financing to sustain and broaden growth -- such as the expansion of the financial system’s total assets, the improvement of the national saving rate and in the delivery of microfinance services, among others -- also have a high probability of being met by 2016.
Meanwhile, asked which PDP targets would need increased attention, NEDA Deputy Director-General Rolando G. Tungpalan said: “Offhand, accelerate infrastructure implementation/investment in infrastructure.”
Sought for comment, American Chamber of Commerce and Industry Senior Adviser John D. Forbes said: “Business groups share the secretary’s view regarding growth of industry and services, as long as reforms continue. But more should be done to support agricultural growth, light manufacturing, and mining.”
European Chamber of Commerce of the Philippines Executive Vice-President Henry J. Schumacher added: “We agree that the services sector will continue to grow but much more needs to be done to develop manufacturing and pull industrial development into the country. If inclusive growth is part of the legacy of this administration, a strong push into manufacturing and agribusiness is needed now.”
Leandro A. Lanzona, Jr., economist at the Ateneo de Manila University, meanwhile said: “I have no doubt that they can achieve their targets for industry and services this year. My main problem is the sustainability of this growth process.”
“Two points need to be addressed,” Mr. Lanzona noted. “First, how are other sectors, like agriculture, going to be affected? Are they going to improve as well? Second, will there also be an increase in gainful and decent jobs? The government needs to show that this process will lead to inclusive growth.”
The PDP 2011-2016 is the government’s development framework that aims to achieve “rapid and sustainable economic growth and development, improve the quality of life of the Filipino, empower the poor and marginalized and enhance... social cohesion...”
Source: Business World, 08 September 2014
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