2006 in Review
Growth Without Progress
Macroeconomic figures paint a pretty picture of the Philippine economy in 2006. The problematic indicators of 2005 became more manageable this year. For instance, oil prices and export levels, which were among the “Five Biggest Disappointments” in our 2005 yearend review, posted turnaround performances that merited inclusion in our “Five Positive Developments” this year. While official figures are not yet out, overall GDP growth in 2006 is expected to outdo, if not equal, the previous year’s. The implementation in February of the increase in the RVAT rate to 12% yielded unprecedented surplus levels.
Looking beyond these aggregated figures, however, questions remain regarding the costs of maintaining these fiscal surpluses. Is the government underspending at the expense of improving infrastructure? Are the high remittance levels masking the real issue of limited local job opportunities? And most importantly, while the country continues to post respectable GDP growth figures, this has been accompanied by rising unemployment and self-rated hunger statistics as well. As Philippine Business recaps the highs and lows of 2006, a different picture of the country emerges—one of growth without progress.
|
