Marcos Administration Unveils Economic Strategies to Protect Philippine Economy
MANILA — President Ferdinand R. Marcos Jr.’s economic team presented comprehensive plans aimed at safeguarding the Philippine economy against various internal and external challenges. The strategy focuses on enhancing economic recovery in the post-pandemic era.
According to Philippines News Agency, Department of Finance Secretary Ralph Recto at the Economic Journalists Association of the Philippines-San Miguel Corp. (EJAP-SMC) Economic Forum, the administration is prioritizing food security to protect Filipinos from inflation exacerbated by high food prices. Recto highlighted the impact of Executive Order 62, which reduces the rice tariff from 35% to 15%, predicting that the lower tariff will decrease rice prices to PHP50 per kilogram starting in August. This measure is intended to alleviate the inflationary pressures on Filipino consumers and stabilize economic growth by influencing the policy rates set by the Bangko Sentral ng Pilipinas (BSP).
BSP Governor Eli Remolona Jr. noted that the current inflation rate of 3.7% in June provides room for monetary policy adjustments, potentially ahead of actions by the US Federal Reserve. He emphasized the BSP’s independent data-driven approach to policy-making, suggesting that rate cuts could occur within the year depending on ongoing economic indicators.
National Economic and Development Authority Secretary Arsenio Balisacan discussed the government’s long-term goals, emphasizing the need to attract more investments and enhance exports to ensure sustainable economic growth. Balisacan pointed out the challenges in the agricultural and manufacturing sectors, which are crucial for reducing poverty but have been declining as a percentage of the GDP. He advocated for a focus on manufacturing to boost job creation and economic diversity.
Special Assistant to the President for Investment and Economic Affairs, Frederick Go, detailed the government’s efforts to position the Philippines as a key investment location in Asia through regulatory streamlining, investment-friendly policies, and significant infrastructure developments. These include initiatives like the Corporate Recovery and Tax Incentives for Enterprises Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill and promoting investments in the Luzon Economic Corridor.
Budget Secretary Amenah Pangandaman, in a recorded video message, underscored the importance of timely budget disbursement for government programs, particularly in social services, to further propel economic growth.