Mapa Institute of Technology

General Economics with Taxation and Entrepreneurship

(SS12)

Paper I
News Analysis

Sumaoang, Sarah Minette D.

A6

3QSY1516
February 2016

I. Despite high economic growth, PH poverty on the rise

For the last quarter of year 2016, our countrys GDP increases almost 6%. However, with
this good news, the poverty rate here in the Philippines is still alarming. Decreasing the poverty
rate here in the Philippines is one of the major goal of the Aquino administration. And what
seems to be the problem between the negative relationship of the increasing GDP and the poverty
rate that has not even reduced to half?
A sound economy doesnt only mean a rising GDP, but also sustainability of the jobs. In
our country where the availability of job is lagging behind, the government should also focus on
providing job opportunities among poor people will help decrease the poverty rate. A sound
economy also means

II. PH sees slowdown in economic growth in 2015

Although there is an increase in the economic growth in the Philippines, it is still slower
than the rate on the past year. Even though we have slower growth, the Philippines still rank on 4
in fastest growing Asia Economy. Among the services, the Agricultural services is only the one
which declined, which means they should allot more focus on this sector. Just as Economic
Planning Secretary Arsenio Balisacan said that the growth of the agriculture sector remains a
challenge to economic planners. Improving our technologies is a must, how can we come up
with our ballooning population, when our food production is very slow. Especially with the
impact of typhoons and El Nino, our global economy gets weaker. The administration should
come up a plan for this kind of situation to avoid scarcity

III. Binay: Economic growth must create jobs

Although the percent growth increases in the last quarter of 2015, it is still useless unless
it provides jobs for the people, according to Vice president Jejomar Binay. Yes, his statement is
true, since one of the criterion for a good economy is a Full employment. Full employment will
help the economic growth increase more. Also one of the major thing that contributes in our
development is the agricultural sector. The agricultural sector need improvements, especially in
the line of technology since we are already behind in the modernization of the technologies. One
of the major projects of the next administration should be focusing on the improvements of
technologies in line of the agriculture to make production easier and faster. Also with providing
more jobs to poor regions in our country.

IV. Lower Prices of basic goods seen with LPG Rollback

Under the revised Price Law, or Republic Act 10623, LPG in classified as one of the
basic necessity. And with a big rollback with this product, many consumers were delighted.
Since the low cost of the cooking fuels can lead to lower cost of other basic goods including
breakfast and other breads. With the number of LPG importers and suppliers in the market, we
are able to diminish down the pricing power of the big players. This maybe a real good news to
the consumers, how about the producers? In one of the session of our class, our professor told us
that it is not always good news, maybe its related to the supply and demand.

Reference:
Philippine Star. January 2016 Issues