The improved performance of the Philippine economy during the 4th quarter of 2001 has stirred analysts to forecast a more positive outlook for the country in 2002. However, economists also cautioned that unless structural problems and the constraint brought about by a lower stock of capital are solved, the Philippines is unlikely to attain in the medium term the speed of economic growth of its Asian neighbors during their peak. This article seeks to provide an objective and independent assessment of the overall performance of the Philippine economy in the previous year. At the same time, it puts forward some projections of the economy in 2002. It also gives some recommendations that would serve as a guideline for our legislators and economic managers in solving the problem that have been hampering our economic growth for decades.
