by: Sarah Joson
Thursday, May 21, 2015 |
At the “The Philippine Business and Economic Outlook for 2015 and Beyond”, event organizer and think tank Philippine Institute for Development Studies (PIDS) said the local economy could grow at a faster rate this year at 6.8 percent, than last year’s 6.1 percent. PIDS Officer-in-Charge and Vice-President Adoracion M. Navarro anticipates that amidst the growth predictions, it will still fall short of the 7-8 percent target set by the government.
Growth is said to be driven by private and government consumption. However, Navarro warned that there are still threats that could dampen the country’s growth prospects. Revenues could also decline this year as customs collections are affected by the drop in oil prices. Revenue losses from the new exemptions on de minimis benefits and higher tax exemption ceiling for employee bonuses can likewise have an impact to economic growth.
With all of the risks, the country is predicted to weather financial shocks as it continues to show resilience from various instabilities.
Navarro also firmly believes that the Philippines has the potential to grow at a faster pace, but she said the government should pave the way for the country by ensuring that resources and infrastructure are consistent, set programs that make the most out of oil price slump, properly ensuring the transfer of resources from the financial sector to the real sector, and reducing the savings-investments gap.
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