How Did the Philippines Achieve Economic Growth of 6.9 Percent?
With an impressive economic growth rate of 6.9 percent in the third quarter of 2017, the Philippines outran China and other neighboring countries in Asia. This achievement was not a sudden stroke of good fortune but a result of the government’s consistent efforts to foster a business-friendly environment. Through smart policies and good governance, the Philippines was able to attract foreign investment, develop its infrastructure and create employment opportunities for its citizens. Let’s take a closer look at the key factors that enabled the Philippines to achieve this economic success.
Economic Reforms
In recent years, the Philippine government has worked hard towards reforming its economy. The administration launched several measures to make the country a more attractive place for foreign investors. Reforms such as easing restrictions on foreign equity and tax incentives for companies who are willing to invest in the country have boosted the confidence of investors in the Philippine market. Coupled with these reforms, the government’s focus on good governance has ensured an enabling environment for businesses to thrive.
Infrastructure Investment
In order to fuel economic growth, infrastructure development and investment is essential. The Philippines government is well aware of this and has made it a top priority. This year, the government unveiled a $180 billion infrastructure spending plan aimed at improving public transportation, building new railways and airports, and improving internet connectivity across the archipelago. Such investments are expected to create jobs, facilitate logistics, and provide a much-needed boost to the local economy.
Growing Middle Class
The Philippines’ rising middle class is another key driver of economic growth. Over the past decade, the country has seen a significant increase in the number of citizens entering the middle class. This growing middle class is providing new opportunities to businesses, as consumers continue to spend more on leisure and non-essential items. This trend has also seen the growth of the Business Process Outsourcing (BPO) industry, which has boomed in the country over the last decade.
Tourism Growth
Finally, tourism has become a huge contributor to the Philippine GDP. The country’s majestic islands and natural beauty have made it a popular tourist destination among travelers from around the globe. With its hospitable people and low cost of living, the country has become an ideal vacation spot, resulting in millions of tourists flocking to the country annually. Apart from the income generated, tourism has also contributed to job creation, infrastructure development, and has assisted in the country’s overall economic growth.
Conclusion
The Philippines’ impressive economic growth rate of 6.9 percent for the third quarter of 2017 is a testament to the government’s continued efforts towards good governance and business-friendly policies. The focus on improving infrastructure, attracting foreign investment and the growth of the middle class have also aided in the improvement of the country’s economy. Nevertheless, there is still much work to be done. The government must continue to prioritize reforms and investments in order to keep the country on its current path of economic growth and transformation.
