Banking giant HSBC suggests that mentioning three potential reforms on Monday’s State of the Nation Address (SONA) could signal the government’s commitment to resolving pressing challenges and improving the macroeconomic fundamentals of the Philippines economy.
The reforms include Military and uniformed personnel pension (MUP) reforms, extension of Executive Order (EO) 10 that temporarily reduced tariffs on key commodities, and liberalization and competitiveness reforms for livestock, onion, and sugar sectors.
The bank believes that these mentions could have a significant impact on the economy’s fiscal coffers, lower inflation, and bring down consumer prices, potentially leading to earlier-than-expected BSP rate cuts.
