August 30, 2015

Targeting Inclusive Growth: PH Economy Hit 5.6% in Q2

"Masinloc,Zambalesjf1296 08" by Ramon FVelasquez - Own work. Licensed under CC BY-SA 3.0 via Wikimedia Commons - https://commons.wikimedia.org/wiki/File:Masinloc,Zambalesjf1296_08.JPG#/media/File:Masinloc,Zambalesjf1296_08.JPG
"Masinloc,Zambalesjf1296 08" by Ramon FVelasquez - Own work. Licensed under CC BY-SA 3.0 via Wikimedia Commons


Philippines posted a significant GDP growth rate of 5.6% in Q2 2015 (first quarter growth is 5%). The growth can be said as optimal and one of the highest in Asia. With the current number, 5.6% pictures a realistic performance of the economy. With slowdown in manufacturing sector due to slowing demand from international market, 5.3% in the first half of 2015 reflects the impact of international market to the economy. Relatively, Japan and China, to name few countries, had also felt the impact of declining consumption of the world.

With slowdown in international economies, creating new products and services is the new challenge which will help in creating new jobs. Skill mismatch remains a big problem for the country; there are many college graduates that are having difficulty of finding a job that matches their studies. There are available jobs in the market but the proportion of new jobs that are being created to the number of new graduates does not match. With current problem, the solution is either graduates accept the available job in the market or look for a job outside the country. The question arises if having a college degree and specializing in a particular course is beneficial and practical in securing a good profession. Another seen solution to skill mismatch is to encourage entrepreneurship, by helping new entrepreneurs to enter the market by providing funding and right information, new jobs will be created.

Infrastructure of the Philippines remains poor compared to other Asian countries. Analysts believed that expanding roads and developing mass transportation would increase the productivity of the country and in turn translate to higher income. In passing, developing the agriculture sector which is the competitive edge of the Philippines could create a new income source for common people and could be a solution to improve export.

Having a high GDP number can be a trophy for a country – but having an inclusive growth, which does not have a concrete measurement and sometimes can only be based on observation, is the true victory.


1 comment:

  1. More diversified jobs needs to be created

    ReplyDelete

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