Business Bayani PH

In a year-end press briefing on December 13, Dr. Arsenio M. Balisacan, secretary of the National Economic and Development Authority (NEDA), commended the media for their pivotal role in keeping the Filipino public well-informed about the nation’s economic progress. Highlighting the achievements and challenges faced in 2023, Balisacan provided a comprehensive overview of the country’s economic landscape.

Strengthening Foundations: PDP 2023-2028 Implementation

At the forefront of the discussion was the successful implementation of the Philippine Development Plan (PDP) 2023-2028, launched in January 2023. Crafted to align with the President’s 8-Point Socioeconomic Agenda, the PDP aims to stimulate job creation, accelerate poverty reduction, and steer the Philippines toward becoming a prosperous, inclusive, and resilient society.

Economic Milestones

Balisacan reported that despite domestic and international challenges, the Philippines achieved a commendable average GDP growth rate of 5.5% for the first three quarters of 2023, positioning the country among the top-performing economies in Asia. While falling slightly below the annual target of 6% to 7%, the government remains confident in achieving the lower end of the range.

Real GDP per capita showed promising signs of recovery, surpassing pre-pandemic levels, with several sectors already outperforming their previous benchmarks. Notably, efforts to boost tourism and major project construction are expected to further propel economic growth.

Inflation Management and Labor Market Dynamics

Addressing the pressing issue of inflation, Balisacan acknowledged challenges faced early in the year, leading to a peak of 8.7% in January. Swift government strategies, including managing food commodity prices, resulted in a steady decline, reaching a 20-month low of 4.1% in November.

While unemployment and underemployment rates decreased to 4.2% and 11.7%, respectively, in October 2023, Balisacan emphasized the need for continuous efforts to improve the quality of employment. The government remains committed to creating high-quality, well-paying jobs and fostering dynamic labor market conditions.

Infrastructure Development and Investment Promotion

The year witnessed significant strides in promoting the Philippines as a premier investment hub in the ASEAN region. The approval of 197 Infrastructure Flagship Projects, totaling PHP 8.7 trillion, aims to address long-standing infrastructure gaps and stimulate job creation. 

Public-private partnerships (PPPs) play a crucial role in these endeavors, with the recent signing of the PPP Code into law enhancing the regulatory framework and inviting private sector collaboration on high-impact projects.

The amendment of the Public Service Act in April 2023, allowing 100% foreign ownership in key infrastructure sectors, further opens doors for foreign investments. Joining the Regional Comprehensive Economic Partnership (RCEP) Agreement strengthens the country’s position in the ASEAN region, expanding market access and streamlining trade regulations.

Embracing Innovation for Future Growth

Recognizing the pivotal role of innovation in economic growth, the National Innovation Council approved the National Innovation Agenda and Strategy Document for 2023-2032. 

Efforts to enhance innovation governance and create a dynamic environment resulted in an improved Global Innovation Index ranking, moving from 59th to 56th out of 132 countries.

Outlook for 2024: Addressing Challenges Head-On

Looking ahead to 2024, Balisacan acknowledged the projections of multilateral institutions for strong economic growth. The government aims for a GDP growth rate of 6.5% to 8.0%, subject to reassessment by the Development Budget Coordination Committee (DBCC) in light of global economic conditions.

Challenges persist, including elevated inflation due to the El Niño phenomenon, geopolitical tensions, and supply-side limitations. The government is actively mobilizing efforts, including the creation of the Task Force El Niño, to mitigate these challenges and sustain economic growth.

In conclusion, Secretary Balisacan expressed optimism that the Philippines will continue to make strides in 2024, building on the foundation laid in 2023. With a focus on innovation, infrastructure development, and economic reforms, the nation remains steadfast in its pursuit of a secure and prosperous future for all.◼