Philippine Economy Faces Growth Risks Due to Structural Weaknesses

PRESIDENT Ferdinand R. Marcos, Jr. should address structural weaknesses in agriculture and governance to prevent the Philippine economy from losing momentum, according to GlobalSource Partners. In a report dated Aug. 3, GlobalSource Principal Advisor Diwa C. Guinigundo and former Bangko Sentral ng Pilipinas Assistant Governor Wilhelmina C. Mañalac said the administration has been more successful at restoring macroeconomic stability than delivering structural reforms needed for long-term growth. They noted that the economy grew 2.8% in the first quarter, below the government’s 6% to 8% full-year target. The analysts identified agriculture as the administration’s weakest policy area, citing inadequate irrigation and post-harvest facilities, modest gains in crop yields and fragmented supply chains. Agriculture, forestry and fishing contracted by 2.2% in the first quarter. The report also cited bureaucratic inefficiencies, procurement delays, weak project execution and regulatory uncertainty as constraints on investment and growth. — Erika Mae P. Sinaking