PH target upper middle income economy by 2022

Singapore: an economic miracle that only took five decades to achieve economic success (Photo: Mike Behnken/Flickr.com )

According to the Philippine Exporters Confederation (Philexport) President Sergio Ortiz-Luis Jr, the Philippines would need to launch and create reforms in order for the country to become an upper middle-income economy by 2022, just in time when Duterte leaves the Malacañang.

As of the moment, the country is under the middle-income economy bracket as stated by the World Bank. If the Philippines would be able to reach the upper middle-income bracket by 2022, Philexport is looking forward to raising the bar by becoming a high-income economy by 2040.

In order to reach the target, Ortiz-Luis pointed out that the country should focus on the following: 1) reforming comprehensive tax, 2) boost investments in infrastructure, 3) ease regulations on foreign investment, 4) reduce the cost of doing business and 5) enhance agro-industrial linkages.

Philexport explains that the following reforms were once adopted by other Asian countries such as China, Vietnam, Malaysia and Indonesia and these were able to further unlock their economic potentials.

Last year the Philippine GDP was at 6.8 percent, the highest it has been in three years.

“Exports is likewise expected to contribute to this overall growth, noting the gradual pick-up in global growth and commodity prices,” Ortiz-Luis said.

The Philippine Peso is still at P50 to a dollar, the lowest it has been in years, primarily due to socio-political issues such as the war against drugs and illegal gambling and foreigners worrying about their safety in the country.