President Ferdinand Marcos Jr expects the domestic economy to grow around 7 percent this year, saying strong fundamentals, prudent fiscal management and reforms in key sectors will cushion against risks from a potential global recession.
“Our actual projection is 6.5 (percent) but there are signs that we might be able to surpass that. We project our economy to grow by around 7 percent in 2023. Our strong macroeconomic fundamentals, fiscal discipline, structural reforms and liberalization of key sectors instituted over the years have enabled us to withstand the negative shocks caused by the pandemic and succeeding economic downturns and map a route toward a strong recovery,” the President said during the Country Strategy Dialogue at the World Economic Forum (WEF) in Davos in Switzerland on Tuesday.
Finance Secretary Benjamin Diokno the other day said the Philippines expects a strong full-year GDP that “most likely much faster than its growth target of 6.5 to 7.5 percent” due to the country’s “bustling manufacturing sector, record-low unemployment, and stable and resilient banking system.”
Pent-up domestic demand following the removal of pandemic restrictions propped up economic growth last year and will continue supporting consumer spending this year, Bangko Sentral ng Pilipinas Governor Felipe Medalla said on January 10.
Department of Transportation (DOTr) Secretary Jaime Bautista, in an interview in Davos, said the international community was impressed by the country’s expected growth rate of 6.5 percent to 7 percent by the end of 2022 and hopes that the Philippines will be able to sustain it.
Bautista said the President and his economic team’s investment pitch for the Philippines chief executive officers (CEOs) of big companies from Asia and Europe received “a very positive response”
Marcos also highlighted the government’s efforts to ensure the country’s continued recovery and make it more conducive for business especially for small businesses by helping them maximize their competitiveness, provide them with technical know-how and help facilitate their entry into the global market.
Marcos said the government is also addressing the energy and food crises through and recognizes the importance of digitalization as a key driver for long-term economic growth, promising to empower and enable MSMEs to participate in the digital economy.
Meanwhile, former United Kingdom prime minister Tony Blair expressed belief that Marcos’ attendance at the WEF “sends a good signal” where he showcased the Philippines and informed the world of where it is headed under the new administration.
Blair, during his meeting with the President on the sidelines of the WEF on Tuesday Tuesday, told Marcos that the Philippines “isn’t quite in good standing last year” which makes it important for someone from the country to “come and articulate very clearly where the country is going, what it’s doing.”
“There should be some kind of stability, some kind of consistency whichever way you’re going. So in terms of policy from the political end, I think it’s important,” he added.
The President for his part said that he thinks that consistency is important especially when dealing with businesses.
Marcos said investors need to know the conditions on the ground so they can draw up their plans.
He said the country’s development plan, for instance, will not only be for economic development but also for the country’s social upliftment and the alleviating of the people’s suffering as a result of the pandemic.
The President said the Philippines’ development plan focuses on digitalization, logistics, infrastructure development, energy, tourism and food security.
Blair serves as the current executive chairman of the Tony Blair Institute For Global Change, a non-profit organization that seeks to support political leaders and governments to build open, inclusive and prosperous societies in a globalized world.
