Despite the "bleak" global prospects over the past few years caused by different factors, President Ferdinand "Bongbong" Marcos Jr. said that the country's economy is now revived and rejuvenated and that his Administration continues to transform it.
*President Ferdinand ‘Bongbong’ Marcos Jr. (RTVM screenshot)*

Marcos said this as he delivered his second State of the Nation Address (SONA) on Monday, July 24. In his speech, the President celebrated the country's high growth and reported that the Philippines remains one of the fastest-growing economies in the world despite the increase in the prices of oil and other basic commodities. "Sinuri nating mabuti ang sitwasyon. Sa tulong ng ating mga ekonomista, nakapagbalangkas tayo ng mga polisiya na magsisilbing pundasyon ng ating ekonomiya sa mga susunod na taon. Kasabay nito ang paglulunsad ng mga istratehiya na mapalakas sa kakayahan ng ating mga kababayan at mga sektor ng ating ekonomiya (We studied the situation well. With the help of our economists, we crafted policies that will serve as our economy's foundation for the next few years. Alongside this, we will launch strategies that would boost our people's capabilities and that of the different sectors of the economy)," he said. "While the global prospects were bleak, our economy posted a 7.6-percent growth in 2022—our highest growth rate in 46 years," he added. According to Marcos, the country's growth for the first quarter of the year was recorded at 6.4 percent, which was still within the government's target of six to seven percent. "We are still considered to be amongst the fastest-growing economies in the Asian region and in the world. It is a testament to our strong macroeconomic fundamentals," he said. Marcos then asked Congress to continue supporting his government's legislative agenda and enact into laws the policies and reforms under its Medium-Term Fiscal Framework.

'Strong and stable'

According to President Marcos, the country's financial system remains strong and stable, with banks having strong capital and liquidity positions. He likewise noted how transactions have once again flourished with the relaxation of pandemic restrictions and the booming e-commerce that was undeterred by the pandemic. "The digital economy contributed P2 trillion— the equivalent of 9.4 percent of our GDP (gross domestic product)," Marcos said. "The economy is revived and rejuvenated, backstopped by a favorable, enabling environment and the strong rule of law," he added.

Priorities

The Chief Executive said that his government continues to prioritize investing in public infrastructure and the people's capacity through food, education, health, jobs, and social protection. Because of this, Marcos said economic and social services received almost 70 percent of this year's national budget. However, the President said higher revenue collections will be critical to bolster public investments. Under the Administration's fiscal framework, Marcos said they envision tax and revenue efforts to further increase to up to 16.9 percent and 17.3 percent, respectively, by 2028. He lauded how revenue generation improved this year. From January to May, the Bureau of Internal Revenue posted "record collections" amounting to P1.05 trillion, an increase of almost 10 percent over the last year. Meanwhile, the Bureau of Customs also increased its collection by 7.4 percent for the first seven months of 2023, amounting to 476 billion pesos. Since July 2022, the Philippine Amusement and Gaming Corporation (Pagcor) also posted increased revenues at 47.9 percent and the Philippine Charity Sweepstakes Office (PCSO) at 20 percent.

Inflation

President Marcos likewise addressed the inflation issue and said it is headed in the right direction. "Inflation rate is moving in the right direction. From 8.7 percent in January, our inflation has continued to ease up in all regions settling now at 5.4 percent for June," he said. "What this means is that in spite of all the difficulties, we are transforming the economy. We are stabilizing the prices of all critical commodities," he added. Citing data from the Bangko Sentral ng Pilipinas, Marcos said inflation was expected to ease further by the close of the year and was projected at 2.9 percent by 2024.

'We're doing everything'

According to President Marcos, his government was doing everything it could to address economic matters it could control. "Puspusan ang ating ginagawa upang pataasin ang produksyon ng ating ekonomiya. Pinapalago natin ang mga industriya, dinadagdagan natin ang mga imprastraktura upang mas mapabilis ang daloy ng mga produkto at serbisyo (We tirelessly increase our economy's production. We grow our industries and increase our infrastructure to expedite the flow of products and services)," he said. "Higit sa lahat, pinapalakas natin ang kakayahan ng mga mamamayan upang mapaganda nila ang kanilang pamumuhay (Most importantly, we are strengthening our people's capabilities so they could improve their lives)," he added.