PH economy: Fast-growing, forward-looking
The Philippine Economic Team and members of the private sector and international financing institutions highlighted the country’s strong economic performance and positive outlook in the administration’s second Post-State of the Nation Address (SONA) Philippine Economic Briefing (PEB) today, July 25, 2023, at the PICC, Pasay City.
The Post-SONA PEB featured a fireside chat between Department of Finance (DOF) Secretary Benjamin E. Diokno and Nomura Southeast Asia Managing Director and Chief Economist Euben Paracuelles, and two (2) panel discussions entitled, ‘A Fast-Growing and Forward-Looking Economy' and 'Views on the SONA and the Philippines’ Socioeconomic Agenda.'
Drivers of Growth for a Forward-Looking Economy
During the fireside chat, DOF Secretary Diokno discussed the country’s drivers of growth—infrastructure development, public-private partnerships (PPPs), and the Maharlika Investment Fund (MIF)—as the PBBM Administration moves into its second year in office. According to the Finance Secretary, the MIF will be a source of funding for the 194 infrastructure flagship projects of the Administration. This will help ease the heavy reliance on local funds and debt financing, thereby widening the fiscal space for other priority areas. Coupled with other fiscal reforms, Secretary Diokno asserted that the Economic Team expects an “A” credit rating before the end of the term of President Ferdinand R. Marcos Jr.
In the panel discussion moderated by DBM Undersecretary Margaux Salcedo and BSP Managing Director Antonio Lambino II, Secretary Diokno added that the government facilitated measures to promote a sound business environment for PPPs, including the amendment of the Implementing Rules and Regulations of the Build-Operate-Transfer Law within the first 100 days of the Administration. This facilitated the faster processing of PPPs such as the Ninoy Aquino International Airport (NAIA) rehabilitation and expansion, which was approved within record-breaking six weeks.
Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr., in his welcome message, also shared: “In all this, collaboration between the public and private sectors is crucial. We need to work together toward an economy that is strong, stable, sustainable, and financially inclusive.”
Meanwhile, Department of Budget and Management Principal Economist Joselito R. Basilio discussed the priority sectors under the FY 2024 Proposed National Budget, anchored on the Philippine Development Plan (PDP) 2023 - 2028, noting that the country’s strong economic performance provides for higher allocations for its priority expenditures.
In addition, National Economic and Development Authority Secretary Arsenio M. Balisacan stressed that investments in health, social protection, and education were outlined in the PDP 2023 - 2028 as a testament to the government’s commitment to inclusive development.
Positive Economic Outlook, Big Potential for Growth
SM Investments Corporation Vice Chairperson Teresita Sy-Coson expressed that she is “very positive about our growth,” stating infrastructure, technology, consumption, health, and energy as prospective growth sectors in the coming years. She added that “the Philippines is always a country with a lot of potential.”
Nomura Southeast Asia Managing Director and Chief Economist Paracuelles also cited that the country’s mining industry will play a crucial role in its economic development, following the trends in other ASEAN countries such as Indonesia.
On taking advantage of this potential through ease of doing business (EODB) in the country, Management Association of the Philippines (MAP) President Atty. Benedicta Du-Baladad shared that the MAP and the government, through the Anti-Red Tape Authority and the Department of the Interior and Local Government, are preparing a Memorandum of Understanding which targets to address pressing concerns on EODB, especially at the local level.
Meanwhile, Asian Development Bank (ADB) Country Director for the Philippines Pavit Ramachandran pronounced that the country's "reforms are in the right direction," emphasizing the significance of the infrastructure push to address underspending and provide the springboard for the Philippines to lead the ASEAN region. The infrastructure projects of the government, in partnership with the ADB, focus on transport connectivity, disaster resilience, and ensuring livable communities. (DBM/PIA-Caraga)
