Rep. Gabriel Bordado Jr. (Photo from his Facebook account)
MANILA, Philippines — The government should take steps to prepare for a possible global recession following the warning by the International Monetary Fund (IMF) and the projected slowdown of the country’s economy next year, a lawmaker has said.
Camarines Sur 3rd District Rep. Gabriel Bordado Jr. made the call as the IMF issued a warning that the Philippines may face “shocks” next year from a global economic slowdown.
According to Bordado, Oxford Economics had projected Philippine gross domestic growth rate will only be at 3.3 percent in 2023, from 6.1 percent this year.
“We do need to protect our people from the impact of the global recession as well as the real and direct consequences of an economy that is very vulnerable to the shocks caused by global conflict, the Russian invasion of Ukraine, and the worsening climate crisis spawning extreme weather events and calamities,” said Bordado during his privilege speech on Monday.
Inflation
While there is no recession yet, Bordado noted that the Filipino public could feel the pinch of the high inflation rate.
The Philippine Statistics Authority (PSA) said the country’s inflation accelerated to its fastest pace in nearly 14 years in October at 7.7 percent, the fastest rise since December 2008.
Less imports
The congressman suggested reducing imports to minimize inflation and prepare for future inflation.
Bordado advised expanding post-harvest support and value chain enhancement for agriculture and fishery in the provinces to boost community-based food security efforts and local economic activities.
He added local governments should use the increase in cash from Mandanas-Garcia for financing, crop storage, processing, transportation, marketing, trade support, and other programs that boost rural economic activity.
As of August this year, he said, the balance of trade in the country reached a record high deficit of $6 billion, according to the PSA.