Felipe Medalla, the former NEDA Secretary General did raise some important points about the current growth figures.
He says that removing the import growth figures from the equation [(GNP=C + I + G + X - M) where C= consumption; I= investment; G= government spending; X= exports and M= imports], C+I+G+X during the boom years of the Ramos administration in the early 1990s was actually higher than in 2006, and 2006 growth appearing robust was mainly due to the slower import growth rates.
What this implies is that with the current lacklustre import growth (particularly of capital equipment, as statistics show), there must have been a lot of import substitution taking place to push growth figures up (or use of local resources, equipment, etc), even if the contribution of the services sector (e.g. BPO, call centres) is factored in.
Which is clearly, not the case.
He says that removing the import growth figures from the equation [(GNP=C + I + G + X - M) where C= consumption; I= investment; G= government spending; X= exports and M= imports], C+I+G+X during the boom years of the Ramos administration in the early 1990s was actually higher than in 2006, and 2006 growth appearing robust was mainly due to the slower import growth rates.
What this implies is that with the current lacklustre import growth (particularly of capital equipment, as statistics show), there must have been a lot of import substitution taking place to push growth figures up (or use of local resources, equipment, etc), even if the contribution of the services sector (e.g. BPO, call centres) is factored in.
Which is clearly, not the case.
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