Inclusive growth remains key goal

Economic prospects are bright and promising

Photo by Yummie Dingding

September 12, 2022

Policymakers will pursue a robust post -pandemic economy for faster, greener, and more inclusive growth, Department of Finance Secretary Benjamin Diokno said.

“Our economic prospects are bright and promising. In the second quarter of this year, the economy grew by 7.4 percent. The expansion was broad-based, with positive contributions from all three major sectors — agriculture, industry, and services,” Diokno said during the Philippine Economic Briefing in Singapore recently.

“The country’s GDP (gross domestic product) growth is an important achievement given ongoing risks posed by rising commodity prices and current geopolitical tensions,” the secretary added.

Moreover, Diokno cited improving investor confidence with the Philippines’ foreign direct investment inflows reaching a record $10.5 billion in 2021 and $4.2 billion for the first five months of 2022.

The Marcos administration will maintain high investments in infrastructure equivalent to five percent to six percent of GDP annually, including the expansion of infrastructure to hasten the country’s shift to the digital economy, he added.

PPP to be maximized

The secretary added that the government will harness the public-private partnership mechanism to welcome impact projects consistent with the country’s development goals.

He also cited game-changing reforms that make doing business in the Philippines more friendly.

Among the measures, he mentioned as having contributed greatly to competitiveness are the Corporate Recovery and Tax Incentives for Enterprises Act or CREATE, and the amendments to the Retail Trade Liberalization Act, Foreign Investments Act, and Public Service Act.

“The historic passage of our economic liberalization measures widens the space for international firms to invest in previously protected sectors and form joint ventures with Filipino companies,” Diokno said.

Meanwhile, Singapore has been the Philippines’ top source of FDI and sixth largest trading partner.

An estimated 200,000 OFWs (overseas Filipino workers) live and work in Singapore, with 58 percent of them registered as professionals and skilled workers, while 42 percent are employed as household service workers — Singapore was the second largest source of overseas Filipino remittances worldwide for the year 2021 that amounted to $2.20 billion.

“We face the next six years with full confidence in our bold socioeconomic agenda. With capable leaders at the forefront of a robust economic plan, the Philippines is poised for a bright economic future.

We are committed to turning this vision into a reality for the Filipino people,” Diokno added.

Furthermore, the secretary said “as we rebuild our economy and gun for rapid, broad-based growth in the next six years, we have opened our doors even wider for mutually beneficial investments. This is why we believe that this is the best time to do business in the Philippines.”

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