CEBU CITY, Cebu - The Philippine government is being urged to seriously implement public-private partnership (PPP) undertakings so as to realize its goal of at least seven percent gross domestic product (GDP) growth by yearend.
PhilAm Asset Management Inc. (PAMI) first vice president for equity fund management Eduardo R. Banaag,
Jr., said that if the PPP were to be started this year, "the Philippines will surely take off in terms of economic vibrancy."
In a recent economic briefing held at Cebu City's Marriott Hotel, Banaag cited five resiliency factors or "five truths," as to why the Philippines is apparently on its way towards stronger economic health.
First, he said, the Philippines has been able to lend money, that is, worth US$250 million to the International Monetary Fund (IMF) to help struggling European governments late last year.
Second, Banaag said the country is undoubtedly being pushed by the strong growth of the Business Process Outsourcing (BPO) sector, which is seen as a long term economic driver and which is expected to double its growth every year.
Thirdly, Banaag - an economist - said that Filipinos' real income, or per-capita income has increased by 53 percent in the last five years.
"The GDP has been increasingly growing for over a decade without fail since 1998. Because of this, our banks are the most capitalized, and tier one capital ratio (a measure of financial strength) is double global standards," he pointed out.
Banaag also pointed to the low interest rate phenomenon being experienced by the Philippine economy. "This is the reason why amortizations are affordable and thus, the appetite for borrowing among consumers which have beefed up as interest rates become much more attractive," he said.
"The Philippine economy is now run by two legs - BPO and OFW (Overseas Filipino Workers) remittances.
Still, despite the consistent growth in these twin sectors, the Philippines still has to work on mplementing economic stimulus via its PPP program," Banaag said.
For this reason, the PAMI executive said he would like to also encourage the public to begin capitalizing on investing in the Philippine stock market "where we are witnessing a long running streak."
In general, underlined Banaag, "things are looking good, indeed, for the Philippine economy."