Resilient Financial Growth In The Philippines: President Marcos' State Of The Nation Address

MANILA, Philippines — President Ferdinand Marcos Jr. articulated a story of a resilient Philippine economy that has flourished in the face of global uncertainty in his second State of the Nation Address (SONA) on Monday. With a spectacular GDP growth rate of 7.6% in 2022 - a peak not witnessed in the previous 46 years - the President portrayed a rosy picture of financial progress in the Philippines.

As President Marcos emphasized, the Philippines' economic growth story isn't merely about the numbers. It's about the resilience shown by the nation in the face of considerable global headwinds. Despite adversities like the COVID-19 pandemic, the country has managed not only to stay afloat but to remain among the fastest-growing economies in Asia and the world at large.

At the heart of this economic success, as per the President, is the nation's robust financial system. The banking sector, or “the transmission arms of our monetary policy,” as Marcos stated, boasts strong capital and liquidity positions. These financial pillars have allowed the economy to remain stable and maintain growth momentum.

Equally vital to this recovery and growth story is the role of the digital economy. In the President's words, it has been a “pivotal player,” contributing a significant P2 trillion, approximately 9.4% of the GDP, in 2022 alone. This figure, according to President Marcos, is a testament to the economy's revitalization and rejuvenation, facilitated by a favorable environment and robust rule of law.

Looking ahead to 2023, the World Bank's projections for the Philippine economy continue to be encouraging. An expected growth rate of 6%, well within the governments target range of 6-7%, underscores the country's promising economic outlook. This growth is likely to be propelled by robust local demand, an expanding Business Process Outsourcing (BPO) industry, a steady flow of remittances, and a sustained recovery of jobs.

Even the country's inflation rate is trending upward. The rate began the year at a high of 8.7% and had fallen to 5.4% by June. The Bangko Sentral anticipates further relaxation to 2.9% by 2024, bolstering the country's financial stability.

President Marcos reaffirmed the administration's commitment to doing all possible to promote economic growth. Public infrastructure, food, education, health, employment, and social protection continue to be top priorities, accounting for more than 70% of the national budget.

An essential part of the financial growth narrative is the increase in government revenue generation. Marcos took the opportunity to highlight the record collections by the Bureau of Internal Revenue and the Bureau of Customs, contributing significantly to the nation's economic coffers.

The President also used his address to appeal to Congress for continued support of his administrations policies and reforms. With a vision to increase tax and revenue efforts to 16.9% and 17.3% by 2028 respectively, Marcos outlined a strategy that is expected to significantly bolster public investments in the coming years, thereby promoting sustained financial growth in the Philippines.

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