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April 19, 2024

Philippines ready for risks and challenges to economic recovery

The Philippines is fully prepared to address risks and challenges that threaten its economic recovery, according to Finance Secretary Benjamin Diokno.

“We have a comprehensive set of interventions to effectively balance the need to sustain growth momentum while containing inflationary pressures and their cascading effects on the economy,” Diokno told fellow leaders at the Global Economy session of the 3rd G20 Finance Ministers and Central Bank Governors Meeting.

The G20 or Group of Twenty is an intergovernmental forum that works to address global economic issues, including international financial stability, climate change mitigation, and sustainable development.

It is composed of 19 countries plus the European Union, which, together, comprises the world’s largest economies, accounting for around 60 percent of the world’s population, 80 percent of global gross domestic product (GDP), and 75–80 percent of international trade.

The Philippines is not part of the G20, but was invited to participate as a guest nation by the Government of Indonesia, the current chair and president of the group.

The Global Economy session was the first in a series of discussions covering various topics, including, global health, international financial architecture, financial sector issues, sustainable finance, infrastructure, and international taxation.

Responding to issues raised on risks to financial stability and rising inflationary pressures, Diokno said the government’s effort to increase agricultural output and importation of certain commodities to stabilize supply and prices of food.

Diokno said that targeted subsidies have been allocated to cushion the impact of rising fuel prices on the public transport sector.

To demonstrate the country’s bright economic prospects, Diokno said the ASEAN+3 Macroeconomic Research Office (AMRO) revised upwards its 2022 gross domestic product (GDP) growth projection for the Philippines to 6.9 percent from 6.5 percent.