Finance Secretary Carlos Dominguez III said on Thursday, April 11 that with the support of the World Bank (WB), the Philippines will grow to be an “upper middle-income” economy this yr.
According to him, the World Bank’s generous support for the Philippines’ sustainable development programs is a “key factor” in achieving its goal of becoming an upper middle-income economy in 2019, three years ahead of schedule.
“For many decades, the World Bank has helped many emerging economies achieve sustainable development. This year, as the bank celebrates its 75th anniversary, we are proud to announce that the Philippines will achieve “upper middle-income” country status ahead of schedule. The bank is highly commended for this achievement,” Dominguez said through the recent Philippine Day Forum held on the Grand Hyatt Hotel in Washington, D.C.
Under Duterte, the federal government aimed to rework the country into an upper-middle-income country by 2022 and a high-income economy by 2040.
Upper-middle-income countries, based on World Bank criteria for fiscal yr 2019, have gross national income (GNI) per capita between $3,896 and $12,055. Meanwhile, high-income countries have a per capita GNI of $12,056 or more. Currently, the Philippines is classed as a lower middle-income country, with a per capita GNI starting from $996 to $3,895.
Socioeconomic Planning Secretary Ernesto Pernia, nevertheless, expressed confidence that the Duterte administration would find a way to realize its goal ahead of schedule this yr.
“Today, the Philippines is one of the fastest growing economies in the world. “Achieving this milestone in our development history can be attributed to many years of hard work, especially building a strong fiscal position and a bureaucracy prepared to catalyze growth,” Dominguez said.
He noted that the country recorded a gross domestic product (GDP) growth rate of 6.2% last yr despite uncertainty attributable to the looming trade war, soaring global oil prices and domestic inflation.
He added that President Rodrigo Duterte has “resolutely delivered” on his socio-economic reform agenda, which incorporates tax reforms, improved ease of doing business, a more transparent and responsive government, increased investment in human capital and improved peace and order.
According to Dominguez, the decline in crime rates, the creation of the Bangsamoro Autonomous Region for Muslim Mindanao, the Comprehensive Tax Reform Program (CTRP) and the Build Build Build program showed how the Duterte administration has implemented its government agenda.
He further highlighted other reforms initiated by the Duterte administration, equivalent to the adoption of the New Central Bank Act and the Rice Customs Tariff Act, the establishment of a national identification system, and the creation of latest platforms to attenuate the fee of doing business.
“These reforms should translate into even greater resilience as we face the challenges of this year. These challenges include an expected slowdown in global economic growth and growing fears of recession in major industrial economies. As we strive to make our economy more inclusive and our governance more responsive to the waves of technological change, we strive to continue to capitalize on the momentum of growth,” Dominguez said.
Source: Dziennik Azjatycki
