The Department of Finance (DOF) remains optimistic the administration’s poverty incidence target will be met, as commodity prices are seen to eventually ease moving forward this year and amid interventions set in place to support sectors affected by higher prices.
Carlos Dominguez, DOF secretary, confirmed in an economic briefing yesterday the administration’s 15.5 to 17.5 percent poverty incidence goal will be accomplished, taking into account a possible decline in prices and the subsidy support provided for badly hit sectors.
“We think that as the year goes on, actually prices of commodities could possibly start moderating downwards. In fact, the futures markets for oil, I think are actually much lower than the current market. So the markets are actually in backwardation,” Dominguez said.
“About this particular Ukraine crisis, number one there is no shortage of commodities, actually we have no shortage of fuel, you have no shortage of corn, you have no shortage of wheat. It’s actually the anticipation of shortages that are driving up prices. So it’s affecting us negatively but we are confident since our agricultural production in the Philippines particularly for our staple food is constant, especially our rice,” he also said.
“I think the management of the supply is well within our mandate, and well within our capability of doing it,” he added.
On the Russia-Ukraine conflict, the important factor is to make sure the country has sufficient supply of food, according to Rosemarie Edillon, National Economic and Development Authority undersecretary.
“That’s also the reason why the economic team has also presented with the President the 14-point agenda, and a big part of that is really making sure that we have a sufficient supply of food,” Edillon said.
Dominguez also said while the effects of the increase in fuel prices are going to be a drag on the economy, the government is “quite well prepared to handle this.”
“The Philippine economy is now recovering strongly, but we have to deal with the volatilities produced by the Ukraine conflict. We must also strengthen the resilience of our communities as we face the difficulties posed by climate change. In our highly integrated world, external events could easily break and imperil our prospects,” Dominguez said in his speech during the Philippine Economic Briefing in Pasay City.
“We have sailed through fine and rough weather. But President Duterte has proven to be a strong and steady captain of the ship. The waves may be high, but the ship of state has been masterfully steered,” he added. – Angela Celis
