Is a breakthrough in the horizon for the Philippine economy in 2007? Dr. Josef Yap, PIDS' president and economic seer, poses this important question for this year's economic outlook. One meaning of breakthrough is an act of surmounting an obstruction or restriction. In this outlook, Dr. Yap clearly points out not just a single obstruction but a myriad of issues that impede the economy from enjoying a continuous robust growth and that it should persistently struggle to surmount. Foremost of these is the decelerating performance of the manufacturing sector--a critical factor that will keep a breakthrough in the economy at bay. Dr. Yap thus prescribes the expansion of the manufacturing base and goes further by emphasizing the primacy of manufacturing as an engine of growth and why it should not be abandoned in favor of the more prolific services sector. Dr. Yap's piece is also a reminder of the urgency for more immediate steps to revitalize the manufacturing sector, and the need for more in-depth analyses of the actual potential and sustainability prospects of the country's services sector.