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By APD Writer Melo M. Acuna
**MANILA, Oct. 5 – **World Bank’s lead economist for the Philippines Birgit Hansl said the recent pivot to China by Philippine President Rodrigo Roa Duterte was a rational approach because it may translate to higher Chinese investments and provide more jobs for Filipinos workers.
At the launch of the Philippine Economic Update, Hansl said China remains one of the largest economies in the world.
“Having good trade and economic relations with China would be a rational approach,” she said.
China is a good strategic partner because a lot of goods produced in the Philippines are inputs for the manufacture of electronic goods in the world’s second largest economy.
This is how Birgit Hansl, World Bank lead economist for the Philippines looks at the shift in foreign policy by Philippine President Rodrigo Roa Duterte.
She said the pivot would lead to more investments and jobs for Filipino workers.
Hansl said both Philippines and China are part oif the global value chain.
She added the pivot was a “very important move” because the prospects for more investments and jobs from Chinese companies remain bright.
On another development, Kevin Cruz, WB Manila’s research analyst said foreign remittances remain strong and has contributed at least 10.2 percent to the country’s Gross Domestic Product.
“All these narratives about economic slowdown in economically-advanced countries has not materialized,” Cruz said.
He explained the remittances has fueld consumption which will have positive impact on the economy in both the near and medium-term.
Government-run Philippine Overseas Employment Administeration reported 1,222,003 workers have been deployed worldwide during the first seven months of 2017 which represents 58 percent of the total workers sent for overseas placement last year.
An average of 5,674 Filipinos leave the country everyday.
Ms. Hansl said the country’s economy is projected to continue its strong growth path in the next two years, “riding on improved global demand for Philippine exports, robust domestic consumption and expected hgirer government investments in infrastructure.”
She added utilizing Mindanao’s potentials woud reduce poverty and achieve more inclusive growth in the country.
During the briefing, Hansl said the medium-term outlook for the country of over 104 million people remains positive because of steady consumption growth, improved remiitances, and higher incomes and the expansion of credit remain the main drivers of growth.
“Exports are projected to grow at a robust rate as stronger growth is expected in the country’s main trading partners.
(ASIA PACIFIC DAILY)
