Business Bayani PH

The National Economic and Development Authority (NEDA) is optimistic about the economic outlook of the Philippines, citing recent policy reforms and initiatives as key drivers for sustained growth. Secretary Arsenio M. Balisacan expressed this confidence during the 2024 Economic Outlook Forum hosted by the European Chamber of Commerce of the Philippines on December 6.

Balisacan acknowledged the challenges faced by the country but highlighted the government’s commitment to maintaining economic momentum. “While we confront challenges in the present—and will undoubtedly encounter more in the coming years—I remain confident that we will be able to stay the course, do what it takes to propel and sustain our economic momentum for this year and the next, and achieve our long-desired vision of a strongly-rooted, comfortable, and secure life for every Filipino,” said Balisacan.

The Philippines recorded 5.9% economic growth in the third quarter of 2023, positioning itself among the best-performing economies in Asia. Balisacan noted that the country needs to achieve at least 7.2% growth in the fourth quarter to meet the lower end of the targeted 6% to 7% GDP growth for the year.

“Comparatively, the Philippines still finds itself among the best performers in the Asian region—only slower than India. We note that the major economies and the country’s peers in the region have seen their growth prospects diminished even more because of the global slowdown in economic activity,” affirmed Balisacan.

Despite external and domestic risks, Balisacan remained optimistic, outlining the government’s strategies to address threats, including implementing inter-agency, non-monetary measures to tackle supply-side constraints and control increases in food prices. 

He emphasized the importance of leveraging the country’s demographic transition, advocating for infrastructure development to encourage job-generating investments that can absorb the influx of younger workers.

“To capitalize on this asset of a young and dynamic workforce, we must—though it’s sometimes tricky—implement the strategy of sustaining massive infrastructure spending,” Balisacan said.

Balisacan highlighted recent reforms aimed at improving the investment ecosystem, including the signing of the Public-Private Partnership (PPP) Code into law. He noted that the PPP Code addresses concerns regarding the legal and regulatory regime for PPPs, creating a more stable and predictable regulatory environment for significant investments in infrastructure projects.

The NEDA Board approved a list of 197 Infrastructure Flagship Projects totaling about ₱8.7 trillion, aiming to address the country’s long-standing infrastructure deficits. These projects are expected to reduce the cost of doing business, expand market opportunities, and promote high-quality job creation and innovation.

The Philippines also joined the Regional Comprehensive Economic Partnership (RCEP) Agreement, strengthening its position as an attractive trade and investment destination in the ASEAN region. 

Balisacan sees these moves as crucial for expanding market access, boosting the export sector, and streamlining trade regulations in alignment with economic objectives.

As the Philippines looks ahead to 2024, Balisacan acknowledged the persisting challenges, including elevated inflation due to factors like the onset of El Niño. The government has mobilized efforts to address the impacts of El Niño through a comprehensive, science-based approach and created the Task Force El Nino to coordinate measures to mitigate its effects.

In summary, Balisacan conveyed confidence that the Philippines can sustain its economic advancement in the upcoming year, aligning with the government’s goals and moving the nation closer to realizing its long-term vision of a stable, comfortable, and secure life for all.◼