More structural reforms to boost PH recovery

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno underscored on Wednesday the importance for the government not to lose track of its plan to make the domestic economy bounce strongly from the pandemic.

 

In an interview during the Laging Handa public briefing program, Diokno said the economy entered the pandemic in a position of strength, with a strong growth path for the last 10 years.

 

Diokno said the peso is among the strongest in the region and unlike in the past crises, the local currency remains resilient.

 

He said government debt has gone down to about 39.6 percent of gross domestic product (GDP).

 

“The rule of thumb is if your debt is 60 percent of GDP and below, you’re okay,” he added.

 

The pandemic has resulted in a recession for several countries, including the Philippines, but Diokno said “this is a given” because the current pandemic is unprecedented.

 

He raised the need to “not lose track of where we want to be” for the next two to three years.

 

Diokno said the government should maximize the current pandemic to implement structural reforms “so after the dust settles we, the Philippines, will be a strong country with less income disparity, competitive and safer.”

 

“We have to take care, (follow) health protocol but at the same time let’s not lose track of our long-term goals, which is to make the Philippines a better, a stronger and safer economy,” he added.

 

Source: Philippines News Agency

 

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