Manila: Sound macroeconomic fundamentals continue to back the resiliency of the Philippine economy amid the challenging environment both domestic and overseas, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan said Thursday. Balisacan noted that domestic growth, as measured by gross domestic product (GDP), remains on expansion mode amidst the slowdown in the third quarter to 4 percent. He emphasized that inflation remains low, the labor market remains healthy, fiscal deficit and public debt remain manageable, the peso and external position remain stable, and the banking system is still robust.
According to Philippines News Agency, Balisacan highlighted that hard-won reforms passed, implemented, and sustained over the years have consistently strengthened the country’s ability to weather periods of domestic or external turbulence. He stated that the domestic economy’s potential growth of at least 6 percent annually is supported by several factors such as a robust labor force, steady capital investment, productivity gains, and ongoing technological progress. Despite short-term fluctuations and external headwinds that may affect immediate outcomes, the economy’s overall trajectory remains firm.
Balisacan added that the economic team’s priorities align with the Philippine Development Plan 2023-2028, with efforts underway to deepen reforms to stay the course. He mentioned that the government would continue to deploy fiscal, monetary, financial, technological, and social-protection policies, along with key legislative measures, to keep actual growth aligned. The economic team has been laying down necessary investments to future-proof the economy amidst environmental, technological, and geopolitical disruptions. Recognizing that investor and consumer confidence are necessary to sustain growth, the team is strengthening economic foundations.
He cited the approval of the Public-Private Partnership (PPP) Code, the Konektadong Pinoy Act, the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, and the Accelerated and Reformed Right-of-Way (ARROW) Act. More initiatives are in the pipeline to advance key structural reforms under the Common Legislative Agenda to strengthen governance and boost productivity and dynamism across major sectors of the economy. Balisacan emphasized the prioritization of human capital development, implementing or expanding laws, policies, programs, and projects in health, education, skills development, and social protection to equip Filipinos to navigate the challenges of a rapidly evolving economic landscape.
