Duterte delegates philippines into economic sweet spot but misgivings rising
A timely and relevant topic!
President Rodrigo Duterte's administration has indeed made significant strides in propelling the Philippine economy into a "sweet spot" characterized by robust growth, low inflation, and a strong currency. Here are some key indicators that support this assessment:
- Economic growth: The Philippine economy has consistently grown above 6% per annum since 2016, with a peak of 7.1% in 2017. This is one of the fastest-growing economies in Asia.
- Inflation: Inflation has remained under control, averaging around 2.5% in recent years. This is largely due to the administration's efforts to manage supply and demand, as well as the benign global inflation environment.
- Currency: The Philippine peso has strengthened against the US dollar, from around 52:1 in 2016 to around 50:1 currently. This has helped to boost the purchasing power of Filipinos and attract foreign investors.
- Investment: The Philippines has become an attractive destination for foreign investors, with foreign direct investment (FDI) inflows reaching record highs in recent years.
- Job creation: The economy has created millions of new jobs, with the unemployment rate declining to around 5% in recent years.
However, despite these positive indicators, there are growing concerns and misgivings about the administration's economic policies and their impact on various sectors of society. Some of these concerns include:
- Income inequality: While the economy has grown rapidly, the benefits of growth have not been evenly distributed. Income inequality remains a significant issue, with the richest 10% of the population holding a disproportionate share of wealth.
- Poverty: Despite the economic growth, poverty rates remain high, with around 16% of the population still living below the poverty line.
- Infrastructure: The administration's infrastructure development program has been criticized for being slow and inefficient, leading to concerns about the impact on economic growth and competitiveness.
- Tax reform: The administration's tax reform program has been criticized for being regressive, with some arguing that it disproportionately affects the poor and middle class.
- Duterte's economic policies: Some critics argue that the administration's economic policies, such as its focus on infrastructure development and its handling of the Bangko Sentral ng Pilipinas (BSP), have been overly reliant on government intervention and have not done enough to promote private sector-led growth.
Overall, while the Philippine economy has indeed entered a "sweet spot" under President Duterte's administration, there are growing concerns about the distribution of the benefits of growth and the impact of the administration's policies on various sectors of society.