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GDP growth goes down to 5.5% this year from last year's 31-year high 7.3% due to the continuing rising of oil prices.
"Petroleum products has significantly impacted on the consumer spending and profitability of businesses", said by PCCI Chairman Emeritus Donald Dee.
The government sees GDP growth of 5.7 to 6.5 percent this year. The local economy grew by 5.2 percent during the first quarter.
"We will begin to see slowdown in the consumer sector because of this and we can't do anything to stop this. We can't fully adjust the wages because we have to benchmark with the other countries as well", he noted.
Profits of the businesses are expected to go down this year however there is hope that the service sector will improve by 5 to 6 percent as against its traditional two to three percent growth. And also the export sector is showing positive at least 5 to 7 percent.
The PCCI executive believes that the key to sustaining economic growth is the government’s subsidy in the area of infrastructure.
The business group is also pushing for the continued reduction of income taxes that would be lowered from 35 to 30 percent next year.
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2 comments:
This is a bad thing for our economy. If the continual rise in price of oil goes on until the next years, then we can predict some outcome there, right? Our GDP will work its way down because of the increase in prices of commodities thus lessening the consumer buying rights.
This is like saying that we are wasting the GDP height of 7.3% by just letting it slip away easily.
Let's hope that we can do something about this and make our way back to the top again.
RP is getting poorer, and poorer. next time, wala na ako mabibili sa baon ko niyan. mahal na oil! pataaay! I hope the government can do something about this. sana may gawin sila. wag lang nila hayaan 'to. mahal na pati bigas!
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