Liberalization laws to boost economic recovery

The Department of Finance (DOF) said it expects a sustained recovery in trade and economic activities this year, following the move by Congress to amend the Retail Trade Liberalization Act, Foreign Investment Act and the Public Service Act.

The DOF said: “The recently approved amendments to the Retail Trade Liberalization Act, along with other economic liberalization initiatives such as the amendments to the Foreign Investment Act and the Public Service Act will support the continued recovery of trade and economic activity in general.”

Congress passed the amendments to the Retail Trade Liberalization Act and the Foreign Investments Act. It also ratified the bicameral conference committee report on a bill amending the Public Service Act, which would now allow 100-percent foreign ownership in telecommunications, airlines and railways.

“As the country continues to grapple with the risks posed by the COVID-19 virus and its variants, the country needs to continue to be vigilant and be ready to respond with the appropriate measures lest the recovery momentum be lost,” the DOF said.

It said the sustained vaccination drive for Filipinos and a calibrated reopening of the economy would be key to helping the Philippines preserve the gains in containing the virus.

Total external merchandise trade in December reached $17.8 billion, up 25.4% from a year ago, which the DOF said indicates “sustained economic recovery.”

Imports jumped 38.3% in December to $11.5 billion, while exports improved 7.1% to $6.3 billion.

Total merchandise in 2021 went up by 24.1% year-on-year to $192.4 billion, and also exceeded the pre-pandemic 2019 figure by 5.4%.

Exports reached $74.6 billion in 2021, up by 5.2% from the 2019 level, while the imports of $117.8 billion were 5.5% larger than the 2019 level.

The Philippine economy grew by 7.7% in the fourth quarter of 2021, higher than the median outlook of 6.5% by 28 analysts polled by various news outlets. For three straight quarters, actual figures outperformed the median outlook.