TWO leading economists are saying the upcoming May general elections would be a boost to the Philippine economy.
Speaking during the British Chamber of Commerce Philippines “Election 2016: The Issues, Parties, and People That Matter” event, University of Asia and the Pacific Prof. Bernardo Villegas and Banco de Oro Unibank First Vice President and chief market strategist Jonathan Ravelas said the election would provide a healthy boost to the country’s economy.
According to Villegas, the country’s 7-percent economic growth would continue no matter who the Filipinos will elect as the next president.
“It does not matter who is elected president. The engine of growth has nothing to do with whoever is elected,” Villegas said.
Villegas then rattled of the $28-billion annual remittance from the 10 million overseas Filipino workers and the $22-billion annual revenue from the business-process outsourcing industry.
He also said that consumption will grow at 6 percent to 7 percent annually, and that domestic tourism will continue its rapid growth with 40 million Filipinos traveling to different tourism destinations in the country this year.
However, Villegas added that should the Philippines elect the right president in May, the country would be looking at an annual economic growth of 8 percent to 10 percent.
He reasoned out the current administration has bungled the implementation of the public-private partnership projects and the country still lacking in foreign direct investments.
Villegas also cited the need to hasten infrastructure projects, including farm-to-market roads, irrigation and postharvest facilities.
Villegas also said the economic restrictions in the Constitution should be amended in the face of globalization and the Asean Economic Community.
“There is a need to increase equity in public utilities,” Villegas said.
For his part, Ravelas said the first half of the year would be the best time to invest in the country.
“This is the best time to invest regardless of whoever wins in the elections. The market is now at a discount,” Ravelas said, while adding that they are looking at the stock market to reach the 8,000 level this year and the peso going at 47.06 against the dollar.
Ravelas noted a pattern during election period dating back to 1992 that has the stock-market posting substantial increases during the first year of a new government.
“There is a one-year honeymoon period. There is peso appreciation after the election. If the election is clean and peaceful, the engines of the economy will move,” Ravelas said.
Ravelas also cited leisure, gaming and mining industries would be the main drivers of the Philippine economy.