The economy grew just 6.2 percent in 2018 from 6.7 percent in 2017, with higher rice and oil prices slowing down the expansion. The country's economic performance was not bad at all, although the expansion could have been faster if the agriculture sector had contributed its share in the growth story.
Three of the country's economic managers—Finance Secretary Carlos Dominguez III, Economic Planning Secretary Ernesto Pernia and Budget Secretary Benjamin Diokno—considered the 2018 economic expansion a firm finish that cemented the Philippines’ standing as one of the fastest-growing economies in Asia.
India, Vietnam and China are the only other nations that surpassed the Philippines' economic performance. The Philippine economy expanded faster than those of Indonesia and Thailand last year, and has grown at an average of 6.5 percent in the first 10 quarters of the Duterte administration.
The Philippines is expected to sustain the growth trajectory this year as long as the government keeps spending on infrastructure projects through the Build, Build, Build program. The construction sector grew by double digits to record its fastest pace since the first quarter of 2013.
The agriculture sector, however, should expand to make economic growth inclusive. With the farm sector's dismal performance in 2018, the government cannot expect a broad-based growth. Agriculture and fishery production may account for just less than a fifth of the GDP, but its 0.6-percent growth in 2018 was a disappointment from the 4-percent expansion in 2017.
The sector still holds the key to an inclusive growth. The agriculture sector accounts for 24 percent of the country's labor force and these workers can provide an added boost to household consumption.
Consumer demand faltered in the third quarter of the year after inflation rose to a nine-year high of 6.7 percent in October and September last year. Consumers withheld spending because of the uncertainty caused by higher prices, principally those of rice and petroleum.
But with a robust agriculture production, those in the countryside could have acquired more purchasing power to spur household consumption. The agriculture sector should not be the weakest link in the economy.
