Many companies had cost-cutting measures in the past year, lots of workers have been laid off. ABS-CBN, the country's largest media station, is currently in a freeze hiring state because of the perceived and felt economic slump. But the government presents a growth in our economy which obviously is not recognized by our business sectors and not felt by the people.

According to the National Economic and Development Authority's assessment of the country's 2001 full year economic performance, Philippine economy improved significantly. Gross domestic product (GDP) is said to have adjusted for inflation and grew by 3.4 percent in the 2001. And as our net factor income from abroad (NFIA) rose 9.2 percent, real gross national product (GNP) increased 3.7 percent for the same period. This performance of our economy surpassed the forecasts of most private analysts and multilateral agencies, which projected the Philippine economy to grow less than 3 percent in 2001.[Based on 2001 GDP growth projections of Asian Development Bank (2.5%), International Monetary Fund (2.9%), and World Bank (2.5%)]

This report tries to prove that our economy was able to overcome the political shocks caused by the previous administration, the worldwide retrenchment of the high technology sector, and the September 11 terrorist attack in the United States. Philippine economy, accordingly, displayed newfound strengths. These are benefits of structural reform measures designed by the Arroyo administration to enhance productivity and market competition such as the Agriculture and Fisheries Modernization Act and the liberalization of retail trade, telecommunication, and utilities. We have regained investor confidence, as our macroeconomic stability enhanced after the government's fiscal deficit reduction program.

Many sectors of our economy grew and the agriculture and service sectors were the major sources of growth. Agriculture, fishery, and forestry rose 3.9 percent in 2001 from 3.3 percent in 2000. In addition to good weather, the government's revitalized support for agriculture through the distribution of certified seeds, rehabilitation of irrigation facilities, and the use of modern equipment especially in the fishery sector contributed to the strong growth in agriculture.

Services also grew a strong 4.3 percent. The continued expansion in telecommunications (20.5%), trade (5.6%). And private services (4.4%) supported this growth.

The country's productive capacity is also said to have remained intact after the September 11 tragedy, real GDP increased 3.8 percent in the fourth quarter.

This growth in our economy is not illusory, as this NEDA report shows. But how come our people do not feel this recovery of our economy? Lots of graduates now are jobless, laying off of workers is still ongoing, and cost-cutting measures in different forms are still executed by different companies. Would it be right then to say that Philippine economic growth is only in these statistics? But aren't they factual?

Perhaps we indeed have some economic improvements in the past year, and more to come this year. But the government lacks in conveying this to the different economic sectors of our country, and especially to our people who continue to lack confidence in the government's capability to help the country recover from the economic slump that most of us have been experiencing since the past administrations.

Now that the end of another academic year nears, lots of graduates would be looking forward to job opportunities. These hopefuls would be banking on this said economic growth of our country. The government then should be able to prove this growth, and regain its people's confidence.

SOURCE: NEDA's 2001 Full Year Economic Performance report, January 31, 2002.