Recto upbeat on Phl economy

Finance Secretary Ralph G. Recto is upbeat on the Philippines’ bright economic outlook supported by a more open and liberalized investment policy landscape, which is part of the government’s growth-enhancing strategies aimed at lifting 14 million Filipinos out of poverty by 2028 and achieving inclusive growth.

“Our growth-enhancing initiatives are meant not only to create an economy that is ready to compete with the rest of the world. These are designed to harness the talents of our young workforce and build a nation where every Filipino can thrive, secure decent jobs, and create better lives for themselves,” he said in his keynote speech at the Philippine Economic Briefing on May 27, 2024 at the Philippine International Convention Center (PICC).

With the theme, “PH On-the-Go: Fast-Tracking Economic Progress,” the 2024 PEB provided a platform for the government to present economic and investment updates to over 800 domestic business leaders as well as members of the diplomatic corps, academe, civil society groups, non-governmental organizations, and the media.

Among the growth-enhancing strategies spotlighted by Secretary Recto include keeping the Philippine economy growing at a higher rate by maintaining price stability, adhering to fiscal discipline, and promoting investments in productivity-enhancing sectors.

He said all of these will put the Philippines on course to becoming an upper-middle income status by 2025, lifting 14 million Filipinos out of poverty by 2028, and positioning the country as the 13th largest consumer market globally by 2030.

The Philippines is expected to become a trillion-dollar economy by 2033 and surpass France to become the 14th largest economy in the world by 2075.

Specifically on investments, the Finance Chief stressed that the current policy landscape for investments in the Philippines has never been more open as the government has been aggressively addressing bottlenecks to realize the USD 72.2 billion worth of investment pledges gathered from President Ferdinand R. Marcos, Jr.’s world engagements alone as of December 2023.

The new game-changing reforms in place are Administrative Order No. 23 which expedites the inspection of all imported commodities entering the Philippines through digital means; Executive Order No. 18 which constitutes Green Lanes for Strategic Investments; the Public-Private Partnership (PPP) Code; and the Ease of Paying Taxes (EOPT) Act.

Among the policy reform measures underway is the amendments to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, which enhances fiscal and non-fiscal incentives and incentivizes investments in priority industries within the special economic and freeport zones.

Capitalizing on these reforms, Department of Trade and Industry (DTI) Secretary Alfredo E. Pascual said the government has been actively strengthening strategic economic partnerships with different countries, such as the trilateral partnership between the US, the Philippines, and Japan that facilitated the development of the Philippines’ Luzon Economic Corridor.