THE government "should improve the responsiveness" of its services, especially for the marginalized sectors, if it is aiming to make the Philippines one of the strongest economies in the region, the dean of the Ateneo School of Government (ASoG) said.
ASoG Dean Philip Arnold Tuaño told The Manila Times in a Viber message on Friday that economic targets must complement responsiveness in delivering public services.
"Government should improve the responsiveness of our institutions to economic and social demands of society in order both to meet its growth targets and at the same time to ensure that the growth can be equitable in order to benefit the marginalized sectors of society," he said.
The comment was after the International Monetary Fund (IMF) retained its forecast of 6.0 percent Philippine gross domestic product (GDP) growth for this year — an improvement from 2023's estimated growth of 5.3 percent — and 6.1 percent for 2025.
Both projections, however, fall short of the government's 6.5- to 7.5-percent target for 2024 and 6.5 to 8.0 percent up to 2028.
Based on a list of 30 economies that, as a whole, account for 82 percent of global output, only India is expected to grow faster at 6.5 percent this year and 2025.
The Philippines will also lead economic growth in Southeast Asia for both years, IMF figures showed, with Indonesia following at 5.0 percent for 2024 and 2025.
IMF Resident Representative Ragnar Gudmondson said, "GDP growth is expected to remain at around 6 to 6.5 percent over the medium term, making the Philippines one of the strongest performers in the region and globally."
Gudmundsson, however, highlighted potential risks, including the possibility of a sudden global slowdown triggered by geopolitical tensions and geoeconomic fragmentation, a less robust-than-anticipated economic recovery in China, or an abrupt tightening of global financial conditions.
With this, despite calling for a responsive public service delivery, Tuaño remained upbeat for the country to achieve better economic performance in 2024.
"Given the overall forecast of generally flat growth rates in the global economy, including a slight slowdown in growth in the two largest economies in the world, the United States and China, it's no wonder that a slight improvement in the forecast Philippine growth rate at 6.0 percent this year means that we will be able to achieve one of the best economic performance rates in 2024 among different countries," he said.
For its part, the Bangko Sentral ng Pilipinas (BSP) sees inflation likely settling within target in January — it forecast a 2.8- to 3.6-percent range, down from December's 3.9 percent — following price declines for some food items.
BSP Governor Eli Remolona Jr. expects inflation to fall within target in the first quarter this year but again top 4.0 percent in the next three months before easing for the rest of 2024.
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