EDITORIAL - Economic growth slowdown

The Philippine economy plunged to a dismal performance in the second quarter of the year due largely to some policy decisions of the Duterte administration, including the closure of the famed Boracay Island due to some environmental concerns.

As per records of the National Economic Development Authority, the national economy grew six percent in the second quarter, slower than the 6.6 percent in the same period of last year and the 6.6 percent growth in the first quarter of this year.

It remains to be seen whether the economy is on track to meet the seven- to eight-percent growth target set by the government for 2018. The economy, however, must have grown by at least 7.7 percent in the last six months to attain the low end of the growth target for this year.

Despite the disappointing figures, the Philippine economy remains one of the top performers in Asia. Vietnam (6.8 percent) and China (6.7 percent) registered the highest economic growth across the region in the second quarter.

As the government hopes the national economy will rebound in the remaining two quarters of the year, the Duterte administration is expected to fix the problems that have slowed the growth down.

The government has identified areas that have failed to contribute to the economy. Socioeconomic Planning Secretary and NEDA director-general Ernesto Pernia singled out the agriculture sector for its dismal output.

Tourism is also another sector that has not made an impact. With the closure of Boracay, the government is expected to lose more than $1 billion due to cancelled bookings, reducing gross domestic product growth by 0.1 percent.

For the past several years, the Philippine economy has been a top performer in the world. In fact, the country has become one of the best areas to invest in. Therefore, the government must exhaust all resources to sustain the momentum.