SHUNNING critics’ observations of bleak economic prospects since last year, President Ferdinand R. Marcos Jr. reported in his second State of the Nation Address (SONA) on Monday that the government was able to successfully “revive and rejuvenate” the country’s economy.
The chief executive vowed to keep the country on track in its economic growth target by attracting more investments, sustaining infrastructure projects, upskilling its workforce and going after agriculture smugglers.
Citing government data, Marcos said the country was able to achieve a 7.6-percent growth in 2022—the highest growth rate in 46 years.
This was sustained in the first quarter of the year, when the growth rate was at 6.4 percent.
“We are still considered to be among the fastest-growing economies in the Asian region and the world. It is a testament to our strong macroeconomic fundamentals,” Marcos said in his over an hour-long SONA, his second.
Sound policies
AMONG the factors which led to the recovery were the relaxation of pandemic restrictions as well as a sound Medium-Term Fiscal Framework crafted by the economic team, according to Marcos.
The policies, he said, have kept inflation in check, easing to 5.4 percent in June from 8.7 percent in January.
To foster continued economic growth, he said the government will also continue to invest in public infrastructure, food, education, health, jobs and social protection.
“Our infrastructure spending will be at 5 to 6 percent of our GDP (gross domestic product),” Marcos said.
The projects are expected to help in the government target of generating jobs for the remaining 4.3 percent of our workforce, as well as for the 11.7-percent underemployed Filipinos.
He said the government is eyeing to increase tax and revenue efforts up to 16.9 percent and 17.3 percent by 2028 to finance the investments.
Boost production, fight smuggling
SUSTAINING the economic gains, he said, will also require boosting the country’s agriculture production, “through consolidation, modernization, mechanization, value chain improvements, as well as timely and calibrated importation.“
Also part of the strategy is the government’s aggressive response against agriculture smugglers and hoarders by filing charges against them.
“They are putting at risk not only farmers, but also consumers. So we will not allow this kind of trend. The days of smugglers and hoarders are numbered,” Marcos said.
He attributed the spike in the prices of food commodities to price manipulation of the said unscrupulous individuals.
Earlier this month, the President ordered the Department of Justice and the National Bureau of Investigation (NBI) to initiate the probe on individuals linked to alleged onion smuggling, hoarding and price fixing during a Congressional hearing.
New Philippines
HE expressed hope his second SONA will inspire Filipinos to join the government in reaching the said goals.
“It is up to us to provide good leadership and guidance. They love the Philippines, and have responded to our call,” Marcos said.
He ended his address with words that closely reflected his SONA conclusion last year: “With this in my heart, I know that the state of the nation is sound, and is improving. The Bagong Pilipinas (New Philippines) has arrived,” he added.
About 2,000 people witnessed the SONA at the Batasang Pambansa Complex in Quezon City.
Image credits: Roy Domnigo and AP/Aaron Favila