The economy will grow by at least 6.5 percent this year, according to Ambassador Alfredo Yao, president of the country’s largest business organization—Philippine Chamber of Commerce and Industry (PCCI).
Yao, newly reelected, told reporters that fourth quarter growth must at least be 6.8 percent to hit the whole-year target of 6.5 percent.
He said 10-percent to 15-percent export growth for the fourth quarter will bring back the growth momentum.
He said growth for next year will be supported by election spending and higher infrastructure spending in preparation for the Philippines’ hosting of APEC, the Pope’s visit and the official start of AEC.
Yao said the PCCI initiative “Kakampi [allies]Project,” “is inviting countries outside of the Asean to put their manufacturing hubs in the Philippines and use the Philippines as their hub to export to the Asean,” he said.
“We need our MSMEs to be competitive. We need to have allies,” he said. The target countries for Kakampi are Taiwan, Korea, Japan, Europe specifically Russia, Yao said.
He added that there is coming big Japan business delegation with 40 plus companies mostly SMEs in February next year.
Yao said growth next year can even hit 8 percent if enough infrastructure will be built to support this growth.
He, however, warned that power supply needs to be stable to support this growth.
Another problem, he pointed out, is port congestion coupled with added red-tape on new import clearance certificates.
During the height of the port congestion problem his own company had 500 containers of raw materials stuck in the yard for three months.