House Speaker Martin Romualdez | File photo from the official website of House of Representatives / congress.gov.ph
MANILA, Philippines — House Speaker Ferdinand Martin Romualdez has expressed optimism with the country’s economy as an International Monetary Fund (IMF) team noted that the Philippines has a chance to catch up in the second half of 2023 after a moderate growth early on.
In a statement on Thursday, Romualdez said he had a meeting with the IMF team led by mission chief Mr. Jay Pereis, who said that there is still a potential to catch up in the second half of the year — and eventually have a faster growth rate early 2024 — even as indications of a global slowdown are present.
There have been fears from economic minds that the Philippines might spiral towards a ‘shallow recession’ by the third quarter of 2023, after gross domestic product (GDP) growth rates slowed down to 4.3 percent in the second quarter.
“This forecast is not only encouraging but also a testament to the resilience and hard work of our nation’s people, as well as the sound economic policies and reforms implemented by the administration of President Ferdinand R. Marcos, Jr.,” Romualdez said.
“This positive outlook from the IMF should serve as motivation for us all to redouble our efforts in revitalizing our economy. It is a reminder that our nation has the potential to rebound and emerge stronger from any adversity,” he added.
According to Romualdez, the IMF team cited the early passage of the 2024 national budget as a way to ensure the continuous growth of the economy. The Speaker, meanwhile, noted that the House has already completed the passage of the 20 Legislative Executive Development Advisory Council (Ledac) priority measures — including bills believed to increase revenue collection.
READ: Romualdez commends House for timely passage of 2 priority bills
“The IMF team said ‘the early passage of the budget could make a big difference’ as funds for infrastructure projects and social amelioration can be frontloaded in the first quarter to offset the effect of low government spending,” Romualdez’ office said.
The IMF team also cited the passage of these laws as factors for the positive outlook:
- Foreign Investment Act
- Retail Trade Liberalization Act
- Public Services Act
The team also said that the impending enactment of the Amendments to the Build-Operate-Transfer (BOT) /Public-Private Partnership (PPP) Act, and the Fiscal Regime for the Mining Industry Act would make the country an ideal destination for foreign direct investments.
“We understand that there is still work to be done to ensure this projection becomes a reality. The government will continue to focus on policies that promote economic stability, job creation, and sustainable growth,” Romualdez said.
“We will also work to improve the investment climate and further enhance our economic resilience in the face of external shocks,” he added