The inflation rate is coming by 2.5 %, and yet there is no sound policy to address the situation and fight back this rising cost of living for the Filipinos.
The oil prices are going up and it will go further higher in few days. The effects of the weakening peso against the dollar is the cause of the rising inflation and the higher cost of fuel ahead.
The expected rise in the crude oil in the international market is another factor of the increasing oil prices in the country.
The components of international oil prices and the dollar exchange rate increase are major factors and indicators for the direction of our economy. The rate of inflation of 2.5 percent is now gripping the lives of our people, and therefore immediate actions shall be taken.
Imports and Exports
This thing of our export and import trade balances shall be monitored and resolved if there are increments of the two. If we have active export industry, then the effect to the dollar is an strengthening of the Peso, and vice versa if imports are greater, then the weakening of the Peso.
Export is very important for our economy.
If we have a robust manufacturing sector which is more geared for exports, then we can state that we have a competent Philippine economy due to the reason that we are intelligent enough to consider that manufacturing is the key to a healthy economy.
Why we need to boost manufacturing? The simple effect of manufacturing is an indicator that we are an industrialized country. We can call ourselves to be an industrialized nation if we have a very thick manufacturing companies that produces products of all kinds to simple ones.
What we are seeing now is that we have a very low GDP compared with our neighboring countries, and our per Capita GDP is very far behind.
Malaysia has 10,500 USD per Capita GDP compared with ours to 2,700 USD GDP per capita. This comparison must take into account introduction of new strategies in our economic policies as to target a higher GDP for the country and aim to overtake Malaysia as an example.
The United States has 53,000 USD GDP per capita. These figures will make us visualize the solution to the problem, wherein we shall commit ourselves to more seeking industrialization as the key to higher GDP's.
If we are going to remain under the spell of drug menace in the country, we shall change and put first the situation of solving the inflation rate which is now defeating our economy.
It will be difficult to live in a country with an accelerated inflation rate, we must avoid such thing to occur here.
The rising international oil prices is a fearsome factor to see for our future as livable country, and if we are not going to do something about the increasing dollar rate now, this future is inevitable to happen.
If we are going to put down the oil prices in the country or maintain it at a lower level, or at a lower rate though there are increments in the prices of oil in the international market, then the best thing to do is to push down the dollar in order to maintain lower prices of gasoline per liter in the country.
Push Down the Dollar
To push down the dollar is to limit our importations. The situation in dealing with limiting our imports the country is very difficult but not hard to solve. We cannot limit our imports just easily, but the counter measure to it is to counter produce those materials and products that we import.
Produce them locally.
By producing locally, the reduction of imports will occur and give effect to less dollar demands. This reduction of importation is through the means of manufacturing, making more factories all around the country.
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