Recto: World’s top 20 economies soon

Recto: World’s top 20 economies soon | Daily Tribune

Finance Secretary Ralph Recto courted US investors to expand their businesses to the Philippines which he said is poised to become among the world’s 20th largest economies.

The Department of Finance shared this in a statement released Thursday, after Recto delivered a speech about the country’s economic opportunities in front of US-based bank and government officials in Washington, D.C. on Wednesday.

“While global prospects remain clouded with uncertainties brought by geopolitical tensions, there is one area of consensus among economists: the Philippines is set to lead growth over the next decades,” Recto said.

“International research firms also attest to our economic strength. They project the Philippines to join the ranks of the world’s top 20 biggest economies by mid-century,” he added.

Recto said the country’s economic team projects its gross domestic product (GDP) to increase by 6 to 7 percent this year due to robust household consumption, energetic labor force, and strategic government spending.

“Multilateral organizations validate the vigor of our economy. They expect us to remain a frontrunner in ASEAN with a projected growth of 5.8 percent to 6.3 percent in 2024,” he shared.

Recto said more Filipinos started earning this year, signaling more demand for goods and services.

“The largest portion of our workforce is engaged in formal and stable work. This is an indication of a strong and growing middle class,” he said.

The Marcos administration aims to upgrade the country to a predominantly upper middle-income status by next year, which Recto said will secure its place as the world’s 13th largest consumer market by 2030.

Less unemployed in Feb.

According to the Philippine Statistics Authority, the number of jobless Filipinos decreased to 1.8 million in February from 2.15 in January. The workers were aged at least 15.

To boost the productivity of the labor force and businesses, Recto said the Marcos administration is building critical projects for long-term growth.

“Another reason why investing in the Philippines is the best move is our commitment to ensuring business stability through prudent fiscal management,” he said.

The economic team aims to gradually reduce the country’s fiscal deficit from 5.6 percent of GDP this year to 3.7 percent in 2028.

“The narrowing deficit path is attributed to the consistently higher government revenue collections and improved expenditure management, which prioritizes massive infrastructure projects and social services,” Recto said.

He invited US investors to take on some of the government’s 185 infrastructure flagship projects under public-private partnership or PPP. These projects are estimated to cost a total of P9.14 trillion and cover energy, transportation, water management, health, and agriculture sectors.