As the year draws to a close amid the holiday season, concerns have been raised about economic performance and the continued strength of the United States dollar against the peso.
However, the government sought to allay public fears, assuring that key targets and forecasts remain within expected levels.
In a Palace briefing, Press Officer Undersecretary Claire Castro said President Ferdinand Marcos Jr. held lengthy meetings with his economic advisers to review the nation’s financial performance over the past year. She relayed the Bangko Sentral ng Pilipinas’ position on the recent exchange rate movements.
“The Bangko Sentral ng Pilipinas allows the exchange rate to be determined by market forces. We continue to maintain robust reserves,” Castro said.
She noted that inflation remains low and is expected to remain within target over the next two years, which is expected to drive domestic demand. Castro also outlined the steps the administration’s economic team is taking, particularly efforts to clear bottlenecks and attract greater private-sector participation.
Field audits suspended
The measures include the temporary suspension of all field audits and related operations of the Bureau of Internal Revenue in response to taxpayers’ concerns over letters of authority and mission orders.
The government is also moving to reduce regulations and streamline processes that hinder investment, with new initiatives and private-sector investment opportunities in agriculture, including in agriculture, set to be announced soon.
In addition, the administration continues to pursue accountability for flood control anomalies, with authorities arresting those responsible, and more personalities expected to be behind bars by year’s end.
“Ongoing efforts to address infrastructure gaps and game-changing investments, along with reforms such as the Public-Private Partnership Code, the CREATE MORE Act, the Enhanced Fiscal Regime for Large-Scale Metallic Mining, the Capital Markets Efficiency Promotion Act or CMEPA, and the Investors’ Lease Act, are expected to boost economic critical infrastructure in communities hit by recent calamities to restore economic activity and support livelihoods,” she added.
Castro also highlighted Standard & Poor’s affirmation of the country’s low and stable inflation as one of the key strengths behind its decision to assign the Philippines a BBB+ high-investment-grade credit rating with a positive outlook. She said the rating reflects investors’ decisive vote of confidence in President Marcos’ leadership.