Ilonggos will survive despite ‘bleak’ World Bank report
“Economy, prudence, and a simple life are the sure masters of need, and will often accomplish that which, their opposites, with a fortune at hand, will fail to do.” –Clara Barton
Despite the World
Bank lowering their projections on global economic growth in 2019 from three percent to 2.9, the resilience
Ilonggos are known for allows me to expect the Western Visayas to move upward this year.
According to the Philippine Statistics Authority, the Western Visayas ranked fourth in economic growth in 2017, posting economic growth figures of 8.4 percent; this was attributed primarily to the agriculture, hunting, forestry and fishing sector; and an improved service sector. The agriculture sector grew from 1.8 percent in 2016 to 8.8 percent in 2017 and the service sector grew from 6.7 percent in 2016 to 8.2 percent in 2017. However, industry fell from 10.6 percent in 2016 to 8.8 percent in 2017; industry accounts for the second-highest share of the region's economy behind the service sector.
For advanced countries in 2019, the World Bank reported “darkening prospects” and said in a statement, “International trade and manufacturing activity have softened, trade tensions remain elevated, and some large emerging markets have experienced substantial financial market pressures.”
The January 2019 Global Economic Prospects reported: “Growth among advanced economies is forecast to drop to two percent this year.
Slowing external demand, rising borrowing costs, and persistent policy uncertainties are expected to weigh on emerging markets and developing economies. In addition, growth is anticipated to hold steady at a weaker-than-expected 4.2 percent this year.
“At the beginning of 2018 the global economy was firing on all cylinders, but it lost speed during the year and the ride could get even bumpier in the year ahead,” said World Bank Chief Executive Officer Kristalina Georgieva. “As economic and financial headwinds intensify for emerging and developing countries, the world's progress in reducing extreme poverty could be jeopardized.”
“To keep the momentum, countries need to invest in people, foster inclusive growth, and build resilient societies,” she added.
The upswing in commodity exporters has stagnated, activity in commodity importers is decelerating, and growth will be insufficient to narrow the income gap with advanced economies.
A number of developments could also put the brakes on growth, including sharper tightening on borrowing costs, which could depress capital inflow and lead to slower growth in many emerging markets and developing economies. Past increases on public and private debt could also heighten vulnerability to swings in financing conditions and market sentiment.
In addition, intensifying trade tensions could result in weaker global growth and disrupt globally-interconnected value chains, or the process in which a product is brought to market.
“Robust economic growth is essential [in] reducing poverty and boosting shared prosperity,” said World Bank Vice President for Equitable Growth, Finance and Institutions Ceyla Pazarbasioglu. “As the outlook for the global economy has darkened, strengthening contingency planning, facilitating trade, and improving access to finance will be crucial to navigate current uncertainties and invigorate growth.”
The informal sector, or those who are self-employed, accounts for about 70 percent of employment and 30 percent of gross domestic product in emerging markets and developing economies. With that division of the economy associated with lower productivity and tax revenue, along with greater poverty and inequality, this is symptomatic of opportunities lost.
Reducing taxes and regulatory burdens, improving access to financing, offering better education and public services, and strengthening public revenue framework could level the playing field between the formal and informal sectors.