The economic team, led by Finance Secretary Benjamin E. Diokno, met with President Ferdinand “Bongbong” R. Marcos, Jr. on October 18, 2022 (Tuesday) to discuss the policy directions for the remaining months of 2022 until the first quarter of next year.
During the Malacañang Press Corps (MPC) briefing following the meeting, Socioeconomic Planning Secretary Arsenio M. Balisacan assured Filipinos that the Marcos administration has developed a series of interventions to effectively manage the economic risks brought about by high inflationary pressures, the Russia-Ukraine conflict, global supply disruptions, and recessions.
“[W]e have developed a program of interventions, including critical policy and legislative priorities, to address the economy’s short-term and medium-term issues – in the next six years,” said Secretary Balisacan.
According to him, the government is particularly concerned about high inflation and intends to expedite efforts to mitigate its debilitating effects towards the goal of reducing poverty.
“Number one priority is still inflation. We will continue to use interest rates to mitigate the effects. We may have to defend the Peso in the coming months, but the overall forecast is that we are still doing better than other countries in terms of inflation, though economic developments are still anticipated,” President Marcos, Jr. said in a Tweet.
Analysis shows that sustained inflation increase in 2022 and 2023 will cause economic growth to slow down, which translates to a lower gross domestic product (GDP) level by 0.6 percent in 2023.
However, rising inflation is expected to eventually return to the medium-term target of 2 to 4 percent by 2024.
Data from the recent World Bank (WB) forecast for October 2022 and 2023 shows that the Philippines is expected to grow by 6.5 percent in 2022, second only to Vietnam among major Association of Southeast Asian Nations (ASEAN) economies, and by 5.8 percent in 2023, which is faster than Indonesia, Malaysia, and Thailand.
Similarly, the Asian Development Bank (ADB) and the ASEAN+3 Macroeconomic Research Office (AMRO) projected the Philippine economy to grow by 6.5 percent to 6.9 percent in 2022 and 6.3 percent in 2023.
A six-year economic plan to serve as a roadmap for navigating the challenges and uncertainties posed by the recent developments in the global economy is in the works, and is slated for completion by the end of the year.
Spearheaded by the National Economic and Development Authority (NEDA), the Philippine Development Plan (PDP) will specifically focus on addressing food, energy, and transportation constraints to relieve the inflationary pressures that hound the most vulnerable sectors of society.
Secretary Balisacan also noted that while the government focuses on solutions for the immediate short-term challenges, it is mindful not to overlook the medium-term goals.
“We believe we are on the right track with the right plans and policies. With your trust and our government’s greater sense of urgency, we are confident that we can weather today’s economic challenges,” said Secretary Balisacan in closing.
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