‘EODB, labor issues risks to 2019 growth’

THE country’s largest business network is optimistic the economy will accelerate next year, but argued it can only be accomplished if challenges in doing business and labor reforms are addressed head-on.

In a statement on Thursday, the Philippine Chamber of Commerce and Industry (PCCI) said it agrees with the 6.7-percent growth forecasts of international lenders. The country will remain resilient in the face of trade uncertainties expected to escalate next year, it added.

“PCCI expects the economy to surge in 2019. Our country continues to enjoy strong macroeconomic fundamentals, enabling us to weather external headwinds,” the statement read.

“Our economic outlook for 2019 is still strong backed by robust consumer spending and stronger government expenditures. We agree with the projections of the Asian Development It is ironic that four months after its enactment, the implementing rules and regulations of the Ease of Doing Business law has yet to be finalized.”—PCCI

Bank and the World Bank that see a growth rate of 6.7 percent for 2019, despite rising global uncertainty,” it added.

However, for the government to keep up with expectations, it was urged by the PCCI to immediately address challenges on doing business in the country. It primarily wants authorities to as soon as possible issue the implementing rules and regulations of the Ease of Doing Business (EODB) law.

“It is ironic that four months after its enactment, the implementing rules and regulations of the Ease of Doing Business law has yet to be finalized,” the statement read.

The PCCI also called for the elimination of the port congestion problem. It also insisted that the government settle—once and for all—the issue of jobs contractualization to create certainty in the labor market, especially with the promise of employment

generation under the Duterte administration’s infrastructure program.

If these issues are resolved, the PCCI believes the country will see its economy accelerate next year, following this year’s tempered GDP growth and surging inflation. It added investment inflows will most likely catch up as higher public outlays, including increased infrastructure spending, will be undertaken aggressively, as promised, by the government.