An economist-congressman believes that "the best is yet to come" in terms of the economy after the Philippines exceeded expectations with its full year gross domestic product (GDP) growth rate.
“The 2022 full year GDP growth rate of 7.6 percent, which exceeds the DBCC (Development Budget Coordination Committee) targets, is a triumph for the administration’s policy of allowing the recovery momentum to proceed in full swing," Albay 2nd district Rep. Joey Salceda said in a statement Thursday, Jan. 26.
“We have not seen the last of this. The best is yet to come," he noted.
Referring to the 7.6 percent GDP growth rate, Salceda said: "For this achievement, I credit affirmative policies to scale back Covid-19 restrictions following a reduction in risk, a recovering tourism sector and major leaders such as the BPO (Business Process Outsourcing), electronics, and mining sectors, the continuation of a policy of opening up the country to investments, and reaffirming our traditional economic partnerships with the world."
“But what catches my attention in the GDP figures is not the usual growth and recovery in consumption. That is to be expected," he said.
“What excites me for 2023 and for the medium-term is the growth in gross capital formation. Businesses, in other words, are investing – and their expenditures for those investments reflected well on the figures," the Committee on Ways and Means chairman further said.
Gross capital formation grew by 16.8 percent year-on-year, according to the Philippine Statistics Authority's (PSA) estimates.
“That bodes very well for 2023 and beyond. That means the business sector is optimistic about the need for more production in the coming years. Don’t bet against the Philippines in 2023.”
Salceda also cited positive signs in the sectors of agriculture, energy, and construction.
“Last year saw negative growth in breeding stocks and orchard development. That figure is now a very slight positive, at 0.3 percent," he said.
“The liberalization of the energy generation sector has yielded some benefits already, and I expect those benefits to grow in the medium-term. The growth in acquisition of power-generating equipment at 36.9 percent is staggering," Salceda noted.
The construction sector growth of 12.7 percent is also a sign, according to Salceda, “that PBBM’s (President Ferdinand "Bongbong" Marcos Jr.) policy of 'Build Better More', or an enhanced continuation of the 'Build, Build, Build', is sound economic policy".