Dr. Villegas predicts boom

Renowned economist and UA&P co-founder Dr. Bernardo M. Villegas said that the Asian region is up for an economic flight in the next 20 years – and the Philippines will take a key role in it.

Dubbed the “prophet of boom,” Dr. Villegas said in a briefing that the Philippine economy may grow 4% at yearend, 5% next year, and even 7% and above by 2011.

Boom factors

According to Dr. Villegas, several factors contribute to bringing off this scenario.

First, overseas Filipino worker (OFW) remittances continue to be strong at approximately $17 million this year, a figure higher than the last. Dr. Villegas refuted cynics speculating that OFWs will soon experience a decline.

“Filipino workers are always more qualified,” said Dr. Villegas. “[They are] more in demand than Mexicans, Indians, Turks…” He pointed out that OFWs’ qualifications go beyond technical knowledge. Many European employers, for example, prefer Filipino workers because they have better personal hygiene, he said.

Dr. Villegas said that the Philippine economy may grow 4% at yearend, 5% next year, and even 7% and above by 2011.

Second, the 2010 elections will spur a consumption boom. “There’d be so much money flowing into the economy,” said Dr. Villegas. He emphasized that even running for president already means spending at least P5 billion.

Third, current spending in infrastructure would also aid gradual development in agriculture. Dr. Villegas believes investing in agriculture – such as building farm-to-market roads and irrigation systems – is a key factor in advancing Philippine economy. Exporting agricultural products to heavily populated Asian neighbors China, Taiwan, and Japan could help boost Philippine economy in the next several years.

‘Emerging engines of growth’

Dr. Villegas also identified “emerging engines of growth” – a group of economies known among economists’ circles as BRICA – Brazil, Russia, India, China, and the ASEAN region, which includes the Philippines. He pointed at these countries’ large consumer markets as a major driving force for growth. These countries will dominate the world’s economic scene in the next 20 years, he said.

Commenting on the Philippines’ export industry, however, Dr. Villegas warned against being overly dependent on the US and Japan as export markets and official development assistance (ODA) sources. He said that being among the countries hardest hit by the economic crisis, the US and Japan have low consumption of Philippine products.