Finance Secretary Carlos Dominguez III has expressed optimism that the economy would regain its stride from hereon as the government rolls out more big-ticket infrastructure projects, continues to implement measures to further ease price pressures, and pursues additional policy reforms to make the domestic economy more conducive to investments and jobs.
“The economy is expected to regain its stride as the government has sustained its accelerated investments in infrastructure and social services on the back of a strong fiscal position—brought about in large part by tax reform and ODA (official development assistance) from our country’s development partners,” Dominguez said.
“There is no room for complacency,” he said, “and the Duterte administration would remain focused on boosting medium-term growth by keeping tabs on the supply and prices of critical food items and continue building up the productive capacity of the economy while maintaining fiscal stability.”
Dominguez issued this statement after Philippine Statistics Authority reported that the gross domestic product (GDP) grew 6.1 percent in the third quarter.
He said the elevated inflation in recent months has impacted growth, but the latest data indicate that price pressures have started to ease as a result of monetary and non-monetary measures that the government has put in place to augment the supply of crucial food items.
He recalled that President Duterte, for one, had issued a slew of directives to remove the administrative constraints to the importation of rice and other essential foodstuff, the higher retail cost of which—along with the surge in global oil prices—had largely driven up inflation this year.
Dominguez expressed optimism that “the growth momentum would be on an upward trajectory from hereon as the government (1) rolls out more big-ticket infrastructure projects under the ‘Build, Build, Build’ initiative in the months ahead, (2) implements more measures to make inflation taper off closer to the government-set target in 2019, and (3) pursues more policy reforms to make the domestic economy more conducive to investments. ”
“Tax reform, along with ODA from the country’s development partners, has increased the fiscal capacity of the government to support its aggressive spending on infrastructure and human capital development,” he said, “hence ensuring the sustainability of its agenda for high growth and financial inclusion in the face of global and domestic challenges.”
He said that, “Deeper investor confidence—as reflected in an almost 50-percent jump in foreign direct investment (FDI) inflows in the year’s first half plus the tight spreads given the country’s recent overseas bond floats—will induce greater economic activity, create quality jobs and all the more invigorate growth over the medium term.”
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