Numbers confound

Numbers confound | Daily Tribune

President Ferdinand “Bongbong” Marcos Jr.’s State of the Nation Address nailed the nation’s basic problem — inflation — since most of the figures showed that the growth momentum remains solid.

Agriculture continues to lag behind other economic sectors, and is the major factor for the high prices since the cost of rice fuels the overall price spike.

In his address to Congress, Mr. Marcos admitted that the economic gains mean little to ordinary Filipinos if the prices of commodities are high.

“Whatever current data proudly bannering our country as among the best performing in Asia means nothing to the Filipino who is confronted by the price of rice at P45 to P65 per kilo,” the President said.

According to the research arm of investment bank ING, inflation leveled off in June as the 3.7-percent rise came in below the consensus and was lower than the 3.9 percent in May.

ING, however, indicated that rice prices and the broader food and beverage sector “continue to dominate overall inflation.”

It gave an encouraging view that “the peak looked as if it has already been hit, and from next month, rice tariff reductions will start taking inflation even lower.”

Last month, the Palace issued Executive Order (EO) 62 that reduced the import levy on rice from 35 percent to 15 percent. Importation of the staple grain has been liberalized under the Rice Tariffication Law.

The tariff reduction took effect on 5 July and is expected to reflect in market prices in the month’s inflation data. The full impact of the policy, however, will be reflected in the August figures.

Other economic figures point to a robust economy.

In the SoNA, President Marcos reported that the poverty rate fell to 15.5 percent in 2023 from 18.1 percent in 2021, which in more concrete terms means 2.5 million Filipinos have escaped the clutches of poverty.

The Philippine Statistics Authority (PSA) said the figure last year surpassed the government’s 16 percent to 16.4-percent target in the Philippine Development Plan 2023-2028.

Much of the improvement was the result of having more jobs.

The unemployment rate fell to 4.1 percent which, according to the Chief Executive, was accompanied by a significant increase in high-quality jobs.

Underemployment decreased from 11.7 percent in May 2023 to 9.9 percent this year. which was the lowest level since 2005.

Thus, the number of employed Filipinos increased to 48.87 million from 48.26 million in May.

Speaker Martin G. Romualdez lauded Marcos’ leadership for transforming the Philippine economy into the strongest in Southeast Asia.

Romualdez described the growth as the “crowning glory” of the President’s first two years in office.

“Amid the various challenges, our President has rebuilt the economy, lifted many Filipinos from poverty, and improved commerce, which boosted livelihood and created jobs for Filipinos,” Romualdez said.

He cited figures from multilateral development agencies that indicated the country has surpassed Vietnam as the fastest growing economy in the region.

The Asian Development Bank’s latest outlook projected the Philippines would continue to be a regional powerhouse through 2024, while the International Monetary Fund sees the country growing the second-fastest globally this year and in 2025, next to India, the House leader said.

The numbers speak for themselves and, in turn, defy all the critics specifically those who carp about the President’s frequent foreign trips.

Mr. Marcos said the target is for the economy to be investment-led from the current growth skein that comes mainly from consumer spending, fed by the remittances of overseas Filipino workers and the business process outsourcing boom.

New business projects that resulted from the assailed foreign trips have generated an estimated 200,000 jobs thus far.

By sheer achievement, President Marcos has defied his counterproductive critics, which reflects his strong will to make life better for Filipinos.