Diokno: PH economy showing strength for 2024

The Department of Finance (DOF) has stated that the Philippine economy’s macroeconomic fundamentals are strong, setting the stage for a solid start to 2024.

Finance Secretary Benjamin E. Diokno said the country has maintained strong economic performance this year, despite facing difficulties in the global environment and domestic challenges.

“The Philippines remains to be one of the brightest spots in the region,” Diokno said at the anniversary event of the business and news magazine BizNewsAsia on Saturday, Nov. 25.

“As we approach the end of the year and gear up for 2024 and beyond, the Philippine government is confident and more than ready to take the economy to greater heights,” he added.

The economy recorded the most robust third-quarter gross domestic product (GDP) growth in the region at 5.9 percent, which brought the country’s end-September average to 5.5 percent.

The GDP figure surpassed growth rates of its neighbors such as China, Indonesia, Vietnam, Malaysia, and Singapore, the finance chief said.

According to World Bank’s recent report, it also expects that the Philippine economy will outpace its counterparts in the East Asia and Pacific region this year, with a growth rate of 5.6 percent.

“We have many reasons to believe that we will achieve the lower end of our growth target of 6.0 to 7.0 percent for this year, and even faster at 6.5 to 8.0 percent from 2024 to 2028,” Diokno said.

Amid a wave of downgrades in other economies, including the US, the Philippines also upheld its investor-grade credit ratings, the DOF chief said.

Recently, Fitch Ratings reaffirmed the country’s triple-B rating with a Stable outlook, following its earlier shift of the Philippines’ outlook from Negative to Stable in May 2023.

Additionally, in August 2023, R&I, a Japanese credit rating agency, maintained the country’s triple-B plus rating and revised its outlook from stable to positive.

Diokno also cited that the domestic employment situation is promising and has consistently shown stability.

The unemployment rate decreased to 4.5 percent in September from 5.0 percent a year earlier, resulting in a year-to-date unemployment rate of 4.6 percent.

Moreover, he said there has been an improvement in the quality of jobs, as evidenced by a record low underemployment rate of 10.7 percent.

Headline inflation, likewise, slowed to 4.9 percent in October from 6.1 percent in September, falling below the Bangko Sentral ng Pilipinas’ projected range of 5.1 percent to 5.9 percent.

“Still, the Inter-Agency Committee on Inflation and Market Outlook remains vigilant against emerging supply shocks in the market to ensure timely and well—grounded policy recommendations on mitigating inflationary pressures,” Diokno said.

Lastly, Diokno said the Marcos Jr. administration is fully committed to driving rapid growth through the complete implementation of business-friendly reforms.

In order to expand the economy and attract foreign investments that create jobs, he said the Philippine government has opened up numerous sectors.

This was done through amendments to the Public Service Act, Retail Trade Liberalization Act, Foreign Investments Act, and the Renewable Energy Act implementing rules and regulations, he said.

— Chino S. Leyco