Marcos expects the Philippine economy to grow by around 7% this fiscal year

MANILA (Reuters – Philippine President Ferdinand Marcos Jr. anticipates that the domestic economy will grow at around 7% this fiscal year. He said strong fundamentals and prudent fiscal management, as well as reforms in key sector, will help to cushion against potential global recession risks.

The Southeast Asian country will also announce its 2022 economic performance Jan. 26. It also expects that last year’s gross national product growth to be quicker than the 6.5%-7.5% target.

Marcos stated that “our strong macroeconomic fundamentals”, fiscal discipline, structural reforms, and liberalisation in key sectors, which we have established over the years, have enabled us to resist the negative shocks caused the pandemic, succeeding economic downturns, and map a way toward a strong recover,” his office released Wednesday.

Marcos traveled to Davos, Switzerland, this week with his economic team, and several Philippine business executives. To seek investment support for his infrastructure program, he met with potential investors.

According to Felipe Medalla, Bangko Sentral ng Pilipinas Governor Felipe Medalla, the pent-up domestic demand that resulted from the lifting of pandemic restrictions supported economic growth last year. This year, consumer spending will be buoyed by this year’s strong performance.

Marcos stated that although our actual projection for 2020 is 6.5 percent, there are indications that we may be able surpass that. He also spoke at Davos where he presented his sovereign wealth fund proposal to potential investors.

Critics have raised concerns about transparency and governance of wealth fund. This has been approved by House of Representatives. The Senate is still deliberating.

The bill provides that the Philippines’ state lenders, Development Bank of the Philippines, and Land Bank of the Philippines, would contribute 75 billion pesos ($1.37 trillion) as initial capital. The central bank will then make contributions through dividends.

(Reporting by Enrico Dela Cruz, Editing by Kanupriya Kaoor)