Cabinet execs: Marcos admin’s 1st year a critical pivot toward full economic recovery
President Ferdinand Marcos Jr., at the start of his second year in office on Saturday, said the government will do its best to give everyone a “better quality of life” so that no one is left hungry.
“With the local government focusing on all aspects of your daily life that we have identified in the national agenda, we can look forward to a boost in local businesses, improved daily transactions and an overall better quality of life,” the president said at the 56th founding anniversary of the province of Davao del Sur.
Marcos tasked the National Anti-Poverty Commission during its en banc meeting to locate “depressed and remote communities” and address long-standing issues with poverty. He also ordered other government agencies to “synchronize” their efforts to efficiently use resources in combating poverty.
Marcos also reiterated his call for unity to resolve the country’s issues.
Meanwhile, an economist said the president’s “biggest achievement” in his initial year is the opening of the economy.
“Iyon po ‘yung prinayoritize [prioritize] kasi po iyong ibig sabihin noon galing po tayo sa isa pinakamatagal na nag lockdown sa buong mundo, so may hesitancy. So, isa po iyon kasi sa missing elements ng recovery po ng ating ekonomiya. So iyon po ‘yung una,” said Rizal Commercial Banking Corp. chief economist Michael Ricafort.
Ricafort said the country’s population would be a huge asset in turning the Philippines into an economic powerhouse. He said the Philippines has around 115 million people in 2023, with more than 50 million belonging to the working age.
Ricafort said the average age in the country is less than 25 years old, which makes the economy productive.
Cabinet secretaries unanimously echoed the gains and substantial reforms by the Marcos administration in its first year in office.
“From Day One when President Marcos Jr. took his oath of office until today, he has made it clear to all of us in the Cabinet that we need to operate as a team, and to support each other’s goals, projects and plans for the people,” Migrant Workers Secretary Susan Ople said.
Trade Secretary Alfredo Pascual described the chief executive’s leadership style as “visionary” which resulted in “remarkable achievements” that are pushing the progress of the Philippine economy and fostering partnerships with both local and foreign markets.
“His strategic guidance to the Department of Trade and Industry in promoting investments and ease of doing business is our driving force to achieve shared prosperity for all. Under his direction, the DTI has been steadfast in our commitment to foster a conducive environment for businesses, enabling them to thrive, generate more jobs and increase income to our fellow Filipinos,” Pascual said.
National Economic and Development Authority Secretary Arsenio Balisacan said while the president was faced with macroeconomic shock in his first year in office due to the pandemic, Marcos’ assumption into office provided the “critical pivot toward the country’s full recovery” from the global health crisis.
“Moreover, his leadership is charting for the Philippines a path that is resilient and inclusive. Recognizing the immediate issues at hand, the President crafted his 8-Point Socioeconomic Agenda, a list of priorities that would guide the policies, programs, and initiatives of his presidency,” Balisacan said.
“The agenda not only focuses on pressing, short term issues such as inflation, a tighter fiscal space, and socioeconomic scarring, but also on priorities for the medium term to reinvigorate higher-quality job creation and accelerate poverty reduction in the next six years,” he said.
Balisacan said that a year into the Marcos presidency, the Philippine economy remains firmly on track as it returns to its high-growth norm, supported by a strong labor market performance and a downward-trending inflation that is on its way to reaching the government’s target.
He said the gross domestic product saw a robust expansion of 7.7 percent in the third quarter of 2022, 7.1 percent in the fourth quarter and 6.4 percent in the first quarter of 2023, representing the first three quarters of the Marcos administration.
The 2022 full-year growth average 7.6 percent exceeded the government’s target for the year of 6.5 percent 7.5 percent, while real GDP per capita surpassed pre-COVID-19 levels beginning in the fourth quarter of 2022.
“These indicators paint a promising picture of a sustained recovery for 2023. The country’s strong economic rebound was likewise reflected in the labor force statistics: the latest unemployment figure in April 2023 was recorded at 4.5 percent, down from 5.7 percent in April 2022. Indicating improved quality of jobs, the underemployment rate also fell to 12.9 percent from 14.0 percent in the same reference periods,” Balisacan said.
Balisacan said the latest unemployment and underemployment rates are now even lower than the pre-pandemic rates in April 2019.
He said inflation also steadily moderated from a peak of 8.7 percent in January 2023 to 6.1 percent in May 2023. With this trajectory, the Bangko Sentral ng Pilipinas expects inflation to return to the inflation target of 2 percent to 4 percent by the fourth quarter of 2023.
“The Marcos administration recognizes that to effect economic and social transformation for a prosperous, inclusive and resilient Philippine society, it must diversify the country’s sources of growth by expanding its markets, raising productivity, and enhancing the value added for the country’s products and services. At the same time, the country must prepare its workforce with the needed skills, build its income-earning ability, and ensure that these capabilities are protected from the adverse impact of various risks,” Balisacan said.
He said President Marcos has set a clear policy direction and conveyed signals to investors and trading partners that the Philippines is indeed “open for business.”