San Francisco, the head of the United States (US)-Association of Southeast Asian Nations (ASEAN) Business Council has lauded the Philippines as a key economic player in the region. US businesses are showing a strong inclination to invest in the country, indicating its growing appeal as an investment destination.
According to Philippines News Agency, President and Chief Executive Officer of the US-ASEAN Business Council, during the Philippine Economic Briefing in San Francisco, the Philippines is recognized for its resilience, innovation, and progress. He pointed out the country's robust economic growth, skilled workforce, strategic location, strong domestic market, and vigorous infrastructure development as key factors attracting investors.
Osius noted the sustained interest of US private sector companies in investing in the Philippines. He commended the Philippine government's efforts to attract more investors and deepen economic ties between the US and the Philippines. He cited President Ferdinand R. Marcos Jr.'s official visit to Washington DC last May as a significant indicator of advancing US-Philippine relations under the current administration.
During the briefing, members of the Philippine economic team presented the country's economic growth potential. Arsenio Balisacan, Secretary of the National Economic and Development Authority (NEDA), mentioned that the government's 6 to 7 percent economic growth target for the current year is achievable, with the economy needing to grow by at least 7.2 percent in the fourth quarter.
The Philippines' gross domestic product (GDP) grew by 5.9 percent in the third quarter, bringing the year-to-date economic growth to 5.5 percent. Balisacan expressed optimism about reaching the 6 percent growth target, supported by easing inflation and expected holiday season inflows.
Looking ahead, Balisacan outlined the 6.5 to 8 percent economic growth target for 2024 to 2028. He emphasized the role of easing inflation and increased infrastructure spending, including a major program on housing, in achieving these goals. He estimated that the housing program alone could add about 1 percentage point to the GDP.
Finance Secretary Benjamin Diokno highlighted the government's Medium-Term Fiscal Framework (MTFF) as a key instrument in sustaining the country's robust post-pandemic economic recovery and supporting accelerated growth. Under the MTFF, the government aims to reduce the deficit-to-GDP ratio to 3 percent by 2028, lower the debt-to-GDP ratio to less than 60 percent by 2025 and to 51 percent by 2028, and maintain infrastructure spending at 5 to 6 percent of GDP annually.