The Philippines Per Capita GDP Has Reached An All-Time High Under Duterte

The Philippines Per Capita GDP Has Reached An All-Time High Under Duterte
Erik De Castro | Reuters
Philippine President Rodrigo Duterte

The average Filipino is doing better under Duterte.

When it comes to Per Capita Gross Domestic Product (GDP), that is. That’s a measure of the total output of a country divided by the number of people in that country.

The Philippines’ Per Capita GDP was last recorded at an all-time high 2891.36 US dollars in 2017, according to Tradingeconomics.com. That’s well above the average of 1627.98 USD for the period 1960-2017.

Also, Filipinos are doing better under Duterte when Per Capita GDP is adjusted by purchasing power parity (PPP). That measure, too, reached a record 7599.19 US dollars in 2017, well above the average of 4969.71 USD for the period 1990-2017.

The Philippines Per Capita GDP Has Reached An All-Time High Under Duterte
Source: Tradingeconomics.com 10/26/2018

To be fair, comparing Per Capita GDP in USD for different time periods is a tricky exercise. Numbers can be distorted by population growth and currency fluctuations. For instance, the climb in the Philippines per capita GDP has been helped by a slow-down in population growth. It's also an ongoing trend that can be traced back to the Aquino administration, which brought macroeconomic stability to the country.

“Aquino is delegating power to competent technocrats and seems to understand what needs to be done to get the lights back on,”  wrote Ruchir Sharma in Break Out Nations (W.W. Norton Company, 2012).

Macroeconomic stability has helped the Philippines economy demonstrate a great deal of resilience in recent years. At the end of 2017, it grew at an annual 6.9% in the September quarter. That’s the strongest growth since the third quarter 2016. And the Philippines’ economy was still growing at 6% at the end of 2018.

Tracing Per Capita GDP growth back to the Aquino period certainly raises the question: who should take credit for the record Per Capita GDP, Aquino or Duterte?

Meanwhile, a recent McKinsey Global Institute (MGI) study places the Philippines among the few emerging market economies that are well-prepared to achieve sustained growth over the next decade.

That's thanks to a rise in Gross Fixed Capital Formation (investment). It reached 695414.08 PHP Million in the second quarter of 2018 from roughly 450,000 PHP Million in July of 2015--well above the 303138.16 PHP Million for the period 1998 until 2018, and an all-time high.

Still, the Philippines’ per capita GDP is equivalent to 23% of the world's average, which makes Filipinos poor. And a resurgence in the cost of living in recent months makes things worse for them. The Philippines' annual inflation rate rose to 6.7% in September of 2018 from 6.4% in the August, and compared to market expectations of 6.8%.

That’s the highest reading since February 2009, thanks to soaring food, transportation and utility prices.

Inflation, together with revolution and corruption, has suspended Philippines economic progress before, and it will do it again, if they aren’t addressed effectively.

So rather than celebrating record per capita GDP, Duterte’s administration should keep an eye on the price of bread and rice.


Panos Mourdoukoutas
Contributor

I’m Professor and Chair of the Department of Economics at LIU Post in New York. I also teach at Columbia University. I’ve published several articles in professional journals and magazines, including Barron’s, The New York Times, Japan Times, Newsday, Plain Dealer, Edge Singa...

My recent book The Ten Golden Rules Of Leadership is published by AMACOM, and can be found here.

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Philippines to Produce Drinking water from Air and Sunlight Technology

Philippines to Produce Drinking water from Air and Sunlight
-R: ADB Energy Sector Group Chief Mr. Yongping Zhai, Green Heat Director Mr. Glenn Tong, ZMW Founder and CEO Mr. Cody Friesen, ZMW Head of Marketing and Communications Ms. Kaitlyn Fitzgerald, and ZMW Executive Vice President Mr. Robert Bartrop during the launch of the SOURCE Hydropanels at ADB headquarters in Manila, Philippines. Photo: Asian Development Bank

MANILA, PHILIPPINES, JUNE 21, 2018 -- The Asian Development Bank (ADB) is collaborating with Zero Mass Water, Inc. (ZMW) and the Philippine National Electrification Administration (NEA) to improve access to quality drinking water in urban and remote areas of the Philippines through the use of a new technology that produces drinking water from sunlight and air.

SOURCE Hydropanels, developed by the US-based ZMW, is an off-grid, solar-powered technology which extracts water vapor from the air into a proprietary absorbent material. The water flows into a reservoir where it is mineralized with calcium and magnesium for health and taste benefits. Each hydropanel displaces up to 50,000 standard PET bottles, providing high quality drinking water and eliminating plastic pollution.

In 2017, ADB installed a SOURCE Hydropanel array at its headquarters in Manila to reduce usage of bottled water while showcasing the technology for possible implementation in different parts of the country. In cooperation with ZMW and with ADB support, NEA is deploying a total of 40 hydropanel units to eight island communities in the Philippines in the coming months.

"The deployment of climate-proof drinking water through the SOURCE Hydropanels will help address the water supply problems in rural and off-grid areas, especially in small islands in the Philippines which lack access to both reliable drinking water and electricity," said ADB Energy Sector Group Chief Mr. Yongping Zhai. "We hope that, through this pilot project, we can demonstrate the viability of this innovative technology."

"We are thrilled to partner with ADB and NEA to deploy SOURCE Hydropanels as an innovative solution to the many drinking water challenges in the Philippines," said ZMW Founder and CEO Mr. Cody Friesen. "The Philippines' fragmented geography adds extra barriers for reliance on traditional water infrastructure, yet makes it ideal for our technology providing families, communities, and businesses with drinking water resilience in the form of a sustainable drinking water supply."

ZMW aims to make safe, high-quality drinking water available to people in developing countries through the use of SOURCE Hydropanels. The company is partnering with its distributor, Green Heat, to deploy hydropanels across the Philippines.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members-- 48 from the region. In 2017, ADB operations totaled $32.2 billion, including $11.9 billion in cofinancing.

Read more from: WWI Waterworld.com

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