Inflation could outpace economic growth this year, especially if no steps are taken to mitigate supply side constraints, according to local economists. Know more:
INFLATION could outpace economic growth this year, especially if no steps are taken to mitigate supply side constraints, according to local economists.
In the same forum, Managing Director of eManagement for Business and Marketing Services, Jonathan Ravelas said he is concerned that the inflation expectations of Ang had basis, given that developments also lead him to believe that the risks point to his worst-case scenario. What could happen is what is called the Phillips Curve. This was created by New Zealand-born economist Bill Phillips in the 1950s and illustrated an inverse relationship between inflation and unemployment.
Given these concerns, Ang said the economy could be hard pressed to squeeze growth, more so double its growth. He estimated that under a business-as-usual scenario, doubling the country’s GDP growth could take 11 years or at least two administrations.
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