House leaders say Phl economy poised for take-off

MANILA, Philippines - Despite harsh criticisms heaped on the Aquino administration and the many global challenges facing the country, the Philippine economy is actually poised for a take-off based on indicators glossed over by critics, House leaders said yesterday.

The lawmakers, led by Ang Kasangga party-list Rep. Teodorico Haresco and Eastern Samar Rep. Ben Evardone, also filed a resolution “commending the government’s economic team of the DOF (Department of Finance), DTI (Trade and Industry), DBM (Budget and Management) with the BSP (Bangko Sentral ng Pilipinas) for the country’s coming economic take-off because of ‘PNoying’ or the President’s ‘Daang Matuwid’ (straight path).”

Haresco is vice chairman of the House committee on small business and entrepreneurship development while Evardone is chairman of the House committee on public information.

Other authors of the resolution are Aklan Rep. Miraflores, chairman of the House committee on tourism, and Guimaras Rep. Joaquin Carlos Rahman Nava, vice chairman of the House committee on appropriations.

“Despite the economic doldrums of major economic partners, like the US, EU and Japan, which have seriously affected the Philippines in terms of trade. We see a robust Philippine economy,” Haresco said.

He pointed out the country’s vibrant stock market, whose index recently breached 5,000 for the first time in 11 years; a sustained current account surplus of $5.2 billion, and a huge foreign currency reserve of $75 billion.

He also cited the appreciating peso which mitigates imported inflation to an estimated 3.5 percent this year and probability of another probable ratings upgrade by Standard & Poor’s “which may against lower the country’s borrowing costs and save us another P25 billion in interest charges.”

“We also have a benign labor-management relationship environment, which is certainly attracting the second wave of Japanese, Korean, and Taiwanese manufacturing investments. All of the above is good governance as a result of ‘PNoying—a straight path or ‘daang matuwid’ which buoyed the confidence of the public and private sectors,” Haresco said.

“With all the essential political vision and actions imbedded in P-Noy’s Cabinet, the country will take off and may even surprise all of us if 2012 breaches the targeted 4.2 percent growth on GDP (gross domestic product),” he said.

He said the indicators belie criticisms hurled by militants on government to dispense with the value-added tax (VAT) and legislate a P125 daily wage.

He said investors to the region are “revisiting the Philippines once more as their Asean hubs experience near full employment levels of skilled labor and rising inflationary pressure on wages.

Vietnam and Thailand have seen salaries and wages increase 15 percent annually over the past three years, he said.