Phl economy to remain robust amid global woes
Borrow money from the bank, expand businesses, and spend, these are just few of the must-do list that businessmen should act upon, as the Philippine economy is seen to explode in a short span of time.
Economist Ronilo Balbieran told Cebu business community yesterday to brace for a long term high economic growth ride in the Philippines, regardless of the outside interventions happening at present, such as the tension between the United States and China.
“Invest heavily for the future. Borrow money from the bank,” Balbieran convinced the business sector to put out their confidence and translate it to actual investments to further strengthen the Philippines, which is primarily fuelled by consumption.
The Philippine economy, he said is not just fuelled by private consumption, but also remittances, is assured of its stability, with P17 trillion money on hand, backed by the US$20 billion annual contribution of the overseas Filipino workers (OFWs).
Thus, regardless of the uncertainty of the global economy and the ongoing “lovers’ quarrel” of US and China on trade and other issues, the Philippines will continue its “honeymoon” with its economy.
“Give Filipinos high speed internet, issue them credit cards and bank accounts—and lets see what happens. Biggest companies are here already because there is going to be an explosion of business that is waiting to happen,” Balbieron said explaining that the presence of multinational big guys here like Google, Alibaba, among others are in preparation of what outside economists are forecasting—that the Philippines is transitioning into an economic tiger in Asia.
Instead of multinationals taking advantage of powerful economy, Balbieran urged businessmen to act right now and use the P2 Trillion net surplus.
“Ask the banks, they don’t even know what to do with their money,” he said.
Balbieran was one of the resource speakers yesterday during the Mandaue Business Month 2019’s Business Summit held at the Oakridge Pavilion.
The University of Asia and the Pacific (UAP) lecturer and founder of Arsokos Corporation, reminded businessmen that the sweet-spot of the Philippines is its 106 million population with 23 years old median age. This is the “lucky star” of the Philippine economy—its population who spends in both good and bad times.
Crisis or not Filipinos love to celebrate—Eat, drink, consume.
The Philippine economy is primarily 73 percent private consumption, 15 percent government (national and local) expenditure. So, no matter how the Duterte government play its card in the next few years, economic strength will continue to move its own course.
The Gross Domestic Product (GDP) now hovering within 5 to 5.5 percent, Balbieran hopes that it will push to even over six percent as the “we entered the Christmas season.”
With the “ber” months cushioning the economy further an impressive 6.5 percent to 6.8 percent GDP is achievable, he said.