PHL needs to address constraints to sustain economic growth

By Kris M. Crismundo

MANILA, May 7 (PNA) — The Philippines remains to be an investment destination in the region with its economic development, however, key constraints should be address in order to sustain the growth for long term.

Oxford Business Group (OBG) Managing Editor for Asia Paulius Kuncinas, during the launching of OBG’s The Report: The Philippines 2015 on Thursday, said the country had made economic developments that attracted multinational companies to locate in the country.

Noting key points in The Report: The Philippines 2015, Kuncinas mentioned factors that support the Philippine economy which include high gross domestic product (GDP) growth; domestic consumption-driven market; quality export of professional services particularly in business process outsourcing (BPO), seafaring, hospitality, and medical services; and solid macroeconomics fundamentals.

But in order for the country to maintain its economic growth key challenges should be addressed.

Kuncinas said the Report noted that value-added products and the level of productivity in the country remains low.

There is also a need for the country to upgrade skills of its talents by closing the gap between the academe and industries.

Cost of trade and production will also be more competitive if the country has better infrastructure including roads, airports, and seaports as well as having a reliable supply of energy and lower cost of power.

Meanwhile, OBG CEO Andrew Jeffreys noted that Philippines’ favorable demographics and improving governance remain attractive to investors which will support its GDP growth expected to remain close to 6.0 percent to 2020.

“Public and private efforts to support local technological innovation should increase the sector’s prospects for growth, with anticipated new infrastructure a bonus,” Jeffreys said. (PNA)