Economic growth drivers for Philippines remain intact despite the threat of a regional slowdown.
During the BDO Economic Briefing held recently in Cebu City, economist Cielito Habito said that he is seeing a number of economic growth drivers this year and onwards for the Philippine economy. This is amid the forecasted slowdown for most of the Philippines’ neighbor economies.
Economies in the East Asia and Pacific region are expected to slow down from the 7.5-percent growth last year to 7.1 percent in 2013, the Washington-based lender World Bank said in its forecast in August.
Habito said that the growth drivers for Philippine economy include increased government spending; improvements in governance; higherprivate domestic investment; credit rating upgrades; surging manufacturing and gaming investments; steady remittance growth and new growth potentials in Mindanao.
To achieve the actual growth, the former socio-economic planning secretary highlighted the need to widen the economic base through concerted small and medium enterprise promotion and development; fostering of social enterprise; strengthening of competition policy; making the financial system inclusive and attracting and pushing large investors into agribusiness.
For his part, BDO Senior Vice President for Trust and Investments Group Marvin Fausto said that he is encouraging people to go beyond savings and invest for growth.
”Invest in business, invest in real assets and invest in the stock market,” he said.
When investing in stocks, Fausto said that investors have to look for the “blue chips” or the stocks of large, well-entrenched and financially-sound companies that have good track record of operations.
”Also, consider long-term investing and do not be alarmed when the stock prices are going down,” he advised.
From the government side, Cabinet Secretary Jose Rene Almendras, who was the keynote speaker for the event, said that the Aquino administration continues to push various projects crucial to the country’s economic growth, including the public-private partnership initiatives.