FFCCCII forecasts 7.5% GDP in 2023
The Federation of Filipino Chinese Chambers of Commerce & Industry, Inc. (FFCCCII) expressed optimism that local economic growth in 2023 could hit between 6.5 to 7.5 percent despite gloomy forecasts by analysts about world economic recession next year.
At the same time, FFCCCII members expect the visit to China by President Ferdinand Marcos Jr. early next year would bring in more goodwill and economic benefits to the Philippines.
FFCCCII President Henry Lim Bon Liong said at the Kamuning Bakery Café Forum that despite uncertainties brought about by the expected US recession, soaring inflation, high interest rates and EU economic turmoil due to the Ukraine war with Russia, the Chinese-Filipino business community remains optimistic of the domestic economy.
“Amid these uncertainties, we believe that Philippine economic and demographic fundamentals are positive, the ASEAN economic dynamism shall continue and the world’s No. 2 biggest economy China shall do well in its reopening after the global pandemic,” said Lim in a statement he read at the forum.
He reminded the media covering the forum that in early 2022 when there were still many dire and gloomy forecasts as the domestic economy was not yet fully open, the “FFCCCII felt the pulse of our entrepreneurs and the masses on the ground among 170 Filipino Chinese chambers of commerce from Aparri to Tawi Tawi.”
Early in 2022, he recalled, the FFCCCII already announced their most bullish forecast of 6.5 to 7.5 gross domestic product (GDP). Now that 2022 is about to end, Lim expects a validation of their forecast as accurate.
“The Philippines is still a source of hope and recovery for Asia due to our positive economic and demographic fundamentals, and with the earnest leadership of President Bongbong Marcos committed on upgrading infrastructures, improving agriculture and pushing many reforms,” he added.
On the President’s visit to China next week, Jan. 3-6, Lim said officials of the federation will be joining the business delegation of the president upon the invitation of the Department of Trade and Industry (DTI).
“We believe this historic state visit is very important to the growth potentials of our Philippine economy, because China is our most important economic and trade partner, being the world’s emerging new economic superpower, and our neighbor,” Lim said noting that last November, the leader of Europe’s most important economy Germany and the leader of Asean’s fastest-growing economy Vietnam both made very important state visits to Beijing to boost economic cooperation with China.
According to Lim, Marcos should take advantage of the visit as a great opportunity for high-level diplomacy to promote more Philippine business and economic cooperation with China.
“Let us maximize the goodwill and deep sense of history of the Chinese people to boost Philippine economic cooperation, reminding our friends in Beijing that it was the parents of President Bongbong Marcos who pioneered opening official diplomatic relations between Manila and Beijing at the height of the Cold War, 4 years ahead of the USA opening official diplomatic relations between Washington and Beijing,” he said.
In fact, he said, it was the then teen-ager Bongbong Marcos who in September 1974 accompanied his mother then First Lady and special envoy Imelda Romualdez Marcos on her first, historic visit to China’s then legendary leader Chairman Mao Zedong.
After Imelda Marcos put Mao’s hand to her cheek, Mao surprisingly kissed her hand in a classic Western gesture. The scene was captured by photographers, and became what the Chinese media described as “the number one kiss in the world” and “the only photograph of Mao Zedong kissing a woman”.
While people focused on the interaction between Mao and Imelda, Lim said the young Bongbong Marcos at his mother’s side also excitedly went up to Mao and kissed his cheeks.
“Let us hope that diplomacy and the strong bonds of history between our two countries will result in many great economic gains,” he added.
In addition, he cited the forthcoming visit as very important because China can help accelerate Philippine economic growth as China can be a catalyst for Asian economic growth since it is now already the world's No. 2 biggest economy and also the world’s No. 1 biggest consumer market with about 16 trillion yuan ($2.3 trillion dollars) in excess household savings between 2010 and 2022.
He pushed for Philippines-China economic and development partnership, especially in areas of agriculture, trade, infrastructure, energy, tourism, and people-to-people exchanges.
Other fields that can be considered and which FFCCCII also advocates include fisheries cooperation between rural coastal fishing communities of both countries, security, peace and order, disaster preparedness, public housing, public health and anti-terrorism cooperation.
The visit is also an opportunity for the President to woo more China industrial export enterprises to invest here in the Philippines because many of China’s export factories have been going to Vietnam, Thailand, Cambodia, and Indonesia these past years.
He expressed progress in possible joint oil and gas exploration to benefit both the Philippines and China.
FFCCCII Vice-president Jeffrey Ng also noted that the President’s visit will be timely in terms of tourism potential as China has announced full reopening by Jan. 8 next year.
Ng pointed out that in 2019, there were only two million Chinese tourists in the Philippines out of the 150 million Chinese tourists in that year of which Thailand hosted 15 million. Ng was batting for three to four million Chinese tourists by 2024.
He said if the Philippines can increase its share to eight million Chinese tourists or at least five percent increase in six years that will create a lot of economic activities in the tourism sector with new investments and expansion for hotel and accommodation facilities.
“We will be busy expanding all over the Philippines that will translate to more employment opportunities and no need for Filipinos to leave the country to look for jobs overseas,” he said.