Economic indicators reflect Phl competitiveness growth

CEBU, Philippines - National Competitiveness Council co-chairman Guillermo Luz reported such assessment to the reporters, recognizing the chances of the country to remain competitive in the business arena.

In the latest round of the IMD World Competitiveness Report, Philippines dropped marginally from No. 41 to No. 43 largely on account of lower-than-expected performance in the areas of the domestic economy and international trade

He added that the economy performed below expectation last year with a gross domestic product growth rate of only 3.7 percent while exports dropped on account of decreases in electronics exports which is considered to be the country's largest manufactured export product.

However, he noted that the country began to show gains in a number of other indicators reflecting reform areas in which categories for public finance, fiscal policy, institutional framework and business efficiency all reported improvements over the last year.

“The changes indicate that some reform measures, particularly in governance and public finance, have begun to gain traction,” Luz said.

According to the recent World Competitiveness Report, he also said, that four of the five members of the Association of Southeast Asian Nations particularly Singapore, Thailand, Indonesia and Philippines all showed declines in rankings including drops in the economic performance which reflects the difficult global environment that these countries had to operate in.

Yet, he further noted that Philippines was one of the two countries in ASEAN with improvements in the efficiency of the government and business sector and one of the only three countries with marginally-improved infrastructure.

“The data captures last year's performance. The good news is that adjustments have been made and are now being felt in this year's First Quarter 2012 figure. The first quarter GDP growth rate of 6.4 percent is the highest in ASEAN and second in the region to China. The improved economic performance is an early indication that the heightened focus on project implementation and delivery coupled with continued governance reforms is a combination which promotes growth across sectors,” Luz stated.

He then said that NCC believes that regional competitiveness councils can be one the building blocks of overall national competitiveness.  

“It is difficult to imagine a strong, competitive country if it were built around only a few economic hubs. For the Philippines to truly become competitive, it would have to build economic hubs or corridors spread throughout the different island groups. For the country to grow and remain stable, it would have to establish multiple economic hubs, each with their own particular strengths and attributes. The presence of economic hubs will provide options not only for investors to locate but also for Filipinos to opt where to live and work,” he said.

He added that the council has received commitments from groups in Angeles, Laguna, Legaspi, Iloilo, Cebu, Tacloban, Cagayan de Oro, Davao, and General Santos in the last two months to form those regional competitiveness committees for all or parts of the respective areas of the country from Region 3 to Region 12.

“Once this social infrastructure and network is in place, the process of building up regional competitiveness can proceed in a more systematic and sustained manner. We are confident that, over time, you will be seeing more competitive regions and a more competitive Philippines,” Luz said. (FREEMAN)