| Abstract: | The recent acceleration of economic growth in the Philippines is remarkable, especially in the context of the dramatic slide in its economic position relative to neighbouring East Asian economies since the early 1960s. It has stimulated discussion–both locally and overseas–of the contributing influences and of the economy's ability to sustain the growth momentum. This paper reviews the relevant literature, focusing on the following factors: political stability, macroeconomic balance, microeconomic efficiency, and equity. Past experience with boom-bust cycles warrants a cautious view of the longer-term prospects of the Philippine economy. Among other major obstacles, the poor state of public finance and low domestic saving rate stand in the way of a stable and self-sustained growth. In some respects, however, the recent performance holds promise as only the first step in the path being taken towards more rapid economic growth that is sustainable and equitable. |
