“What’s clear from all the facts and figures cited by our economic managers is the economy is doing very well at this point”
THERE’S good news on the socio-economic front.
Economic Planning Secretary and concurrent National Economic and Development Authority Director General Arsenio Balisacan told the House Appropriations Committee recently the country’s latest gross domestic product per capita has surpassed the pre-pandemic level by more than 10 percent as a result of government programs to support economic growth.
GDP per capita in the first quarter of 2024 grew 4.8 percent and already surpassed the pre-pandemic level by 10 percent.
World Bank data showed in 2019, the Philippines’ GDP per capita stood at US$3,413.8. When COVID-19 hit in 2020, it declined to US$3,224.4. The GDP per capita, or the average income per person in the country, is now over US$3,700.
Moreover, the government was able to attract investments that would create quality jobs, as underemployment in May 2024 settled at 9.9 percent, a record-low since 2005.
Poverty incidence also declined to 15.5 percent in 2023 from 18.1 percent in 2021, which means 2.45 million Filipinos were lifted from poverty while food-poor individuals declined by 1.71 million.
To boost growth next year, the Marcos Jr. administration will continue to implement the strategies spelled out in the Philippine Development Plan 2023-2028.
The plan calls for economic and social transformation to promote job creation and accelerate poverty reduction by steering the economy back on a high growth path.
Under the PDP, the aim is to maintain high levels of economic growth from six to seven percent this year to 6.5 to eight percent annually from now until 2028.
The plan seeks the creation of more and better-quality jobs, and sets unemployment rate targets of 4.4 to 4.7 percent in 2024 and from four to five percent annually from 2026 to 2028.
It wants to bring down the poverty incidence rate to 16 to 16.4 percent in 2024 and to 8.8 to nine percent by 2028.
For his part, Finance Secretary Ralph Recto has reported the administration achieved half of its target revenue collection this year at PP2.15 trillion as of end-June, which is also 15.6 percent higher than the collection in the same period last year.
He ssured the Committee on Appropriations the current fiscal management will help in easing debt-to-GDP ratio to 60.4 percent next year.
Meanwhile, Bangko Sentral ng Pilipinas Governor Eli Remolona also focused on efforts to tame inflation, which allows the Monetary Board to keep its key policy rate for the time being.
Budget and Management Secretary Amenah Pangandaman also detailed to the Committee the P6.352-trillion proposed 2025 national budget, of which, 62.6 percent has been allocated for social and economic services that will continue improve the country’s socio-economic condition.
The Philippine Statistics Authority also reported recently the country’s jobless rate dropped to 3.1 percent in June, or about 1.62 million unemployed, as more Filipinos were hired in the construction sector.
National Statistician Claire Dennis Mapa said the country’s employment rate was at 96.9 percent in June, translating into 50.28 million gainfully employed Filipinos – said to be the second best employment figure under the Marcos Jr. administration.
In December last year, the jobless rate also reached 3.1 percent, the lowest unemployment in 19 years or since 2005.
Thus far, the average jobless rate this year is 3.9 percent from an average of 4.3 percent in 2023 and 5.4 percent in 2022. But underemployment remains at an average of 12.3 percent, or more than 6 million people seeking better quality work.
The construction sector saw the biggest annual increase of workers at 938,000 people.
The sector’s robust growth is the result of government’s accelerated infrastructure projects and higher private sector investment.
Industry experts believe this labor-intensive industry’s rapid recovery from the pandemic likely contributed significantly to the employment surge.
The improved unemployment data may be attributed to seasonal factors, government initiatives, and improving business confidence.
While these trends are positive, the sustainability of unemployment decline and the rise in underemployment require close monitoring.
Top of Form
Underemployment in June was the highest since April’s 14.6 percent but still better than the underemployment rates from 2019 to 2022.
What’s clear from all the facts and figures cited by our economic managers is the economy is doing very well at this point, and there’s ample reason to believe that Filipinos can expect better times ahead. (Email: ernhil@yahoo.com)
