Filipino Businessmen Expect Slowdown in Local Economy, But Remain Confident in Philippine Growth
In the wake of a global economic slump, Filipino businessmen are anticipating a slowdown in the local economy this year. However, they maintain their confidence in the Philippine growth rate, which is expected to remain among the highest in Asia. Dr. Cecilio K. Pedro, president of the Federation of Filipino Chinese Chambers of Commerce and Industry, Inc. (FFCCCII), and Sergio Ortiz-Luis Jr., president of the Philippine Exporters Confederation of the Philippines (Philexport), both expressed these sentiments during the “Pandesal Forum” held at the Kamuning Café on Friday, September 1.
Ortiz-Luis projected that the country’s gross domestic product (GDP) would grow between 4.5 percent to 5 percent this year, falling short of the government’s target of 6-7 percent. Despite this, he emphasized that the Philippines would still outpace its neighbors in Asia, including China. He also encouraged the government to efficiently address economic challenges and take advantage of available opportunities.
Pedro, on the other hand, did not provide a specific growth projection but asserted that the Philippine growth rate would surpass that of China. While acknowledging the slowdown, he stated that this was not unique to the Philippines and expressed optimism for future economic activities, particularly due to the Christmas season and the upcoming barangay and SK Sangguniang Kabataan elections. Pedro also highlighted the importance of overseas Filipino workers (OFWs) and their contribution to consumer spending.
The FFCCCII, as a group, believes that the Philippines is still capable of achieving a growth rate of 6 to 7 percent by 2023. They anticipate increased economic activities with the revival of the tourism industry and heightened election-related spending. Pedro stressed the need to strengthen tax collection, attract foreign direct investment (FDI), and generate more investments to boost employment and align with the rest of Asia.
The Filipino businessmen expressed caution regarding the high prices of commodities and slower global economic growth, urging the government to address inflation and implement measures to enhance the purchasing power of the population. Pedro emphasized the importance of attracting FDIs and called for the government’s participation in the Regional Comprehensive Economic Partnership (RCEP) to promote the country as a production base.
Additionally, Pedro highlighted the need to streamline business processes, eliminate government red tape through digitalization, and explore nuclear power technology to address high power rates and attract investments. He commended the government’s infrastructure investment program, known as “Build Better More,” for its potential impact on the country’s economy. Pedro also emphasized the significance of the manufacturing and agriculture sectors, calling for government support in their modernization and efforts to combat smuggling, which threatens domestic industries and employment.
In conclusion, Pedro renewed calls for a strengthened “Buy Pinoy” movement to promote Filipino-made products and services, emphasizing the importance of self-sufficiency in building a strong and globally competitive economy.
