Key Highlights :
The Philippine economy is on the rise, and Finance Secretary Benjamin Diokno, the chief economic manager of the Marcos administration, is optimistic about a possible 7% growth in the first quarter of 2023. Diokno made the forecast in an open forum with reporters at the Department of Finance (DOF) building on Friday.
The news comes as the Philippine Statistics Authority (PSA) reported inflation cooling down in March and the economy continuing its growth in the last three months of 2022, pushing the full-year gross domestic product (GDP) to exceed the government’s target ceiling. The economy, as measured by GDP or the total value of goods and services produced in a specific period, grew by 7.2% during the October to December 2022 period.
Wholesale and retail trade, financial and insurance activities, and manufacturing were the main contributors to the fourth quarter 2022 GDP growth, with respective growth rates of 8.7%, 9.8%, and 4.2%. However, prices of consumer goods in the Philippines are significantly higher than the government’s target range this year, given the persistence of high prices of basic goods and necessities.
The inter-agency Development Budget Coordination Committee (DBCC) has retained its economic growth projection for the year at 6.0% to 7.0%, and from 6.5% to 8.0% from 2024 to 2028. The government is set to release official first-quarter economic growth figures in May.
In addition to his GDP forecast, Diokno discussed the main objective of the proposed military and uniformed personnel (MUP) pension system, which is to ensure a sustainable and equitable pension scheme for current and future members of the military and uniformed service. Diokno said the current system as formulated is “simply not fiscally sustainable.”
Diokno outlined four recommendations to reform the MUP pension system, which he said were “okay” with President Ferdinand Marcos Jr. During his stint as Budget secretary under the Duterte administration, Diokno pushed for the reform of the pension system for MUPs particularly mandating uniformed personnel to contribute to their pension fund.
Diokno said he will meet with other concerned agencies and stakeholders on the proposal to address the current issues. He said, “We are determined to come up with a reasonable proposal in consultation with the concerned agencies and stakeholders. In fact, next week, Secretary Galvez, Secretary Abalos, representatives from the Office of the President, the Department of Budget and Management, and I will meet to fine-tune the proposal and address the current issues of all involved.”
The Marcos administration’s chief economic manager Benjamin Diokno’s forecast of 7% economic growth in the first quarter of 2023 is a sign of the country’s continued progress. Diokno is also taking steps to ensure a sustainable and equitable pension scheme for current and future members of the military and uniformed service. With Diokno at the helm, the Philippine economy is sure to continue its growth trajectory in the years to come.