Diokno showcases PH economy strengths, PBBM admin’s initiatives to propel rapid growth thru biz-friendly reforms

Finance Secretary Benjamin E. Diokno has showcased the strengths of the Philippine economy and the Marcos Jr. administration’s concerted efforts in propelling rapid growth through the full implementation of business-friendly reforms during his closing remarks at BizNewsAsia’s 22nd Anniversary on November 25, 2023.

According to the Finance Secretary, the Philippines is in a position of strength as evidenced by its third quarter gross domestic product (GDP) growth of 5.9 percent—the strongest in the region.

This strong performance is also supported by the World Bank (WB), which expects the Philippine economy to surpass its East Asia and Pacific peers in 2023 at 5.6 percent.

Meanwhile, the ASEAN+3 Macroeconomic Research Office (AMRO) projects the Philippines to post the highest growth in Southeast Asia both in 2023 and 2024 at 5.9 and 6.5 percent, respectively.

“So 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,” Secretary Diokno said.

According to the Finance Chief, the country’s gross international reserves (GIR) as of end-October 2023 of USD 101.1 billion, which is equivalent to 7.5 months’ worth of import cover, is well above the International Monetary Fund’s (IMF) Assessing Reserve Adequacy (ARA) metric at 1.9 in 2023.

The ratio of the Philippines’ GIR relative to the IMF’s ARA metric is remarkably higher than China’s 0.7 as well as Malaysia and Indonesia both at 1.1.

He further noted that since the global financial crisis, the ratio of the country’s GIR relative to the said metric has been consistently higher than selected Asian and emerging market economies.

“Having adequate reserves could reduce the likelihood of a balance of payment crisis, help preserve economic and financial stability against pressures on the exchange rates, and create space for fiscal autonomy,” Secretary Diokno said.

Moreover, the Philippine peso continues to be supported by structural foreign exchange inflows and ample international reserves. The year-to-date average peso-dollar exchange reached PHP 55.64, well within the assumption for 2023 of PHP 54 to 57.

Fu