House Speaker Martin Romualdez (Speaker’s office)

The International Monetary Fund (IMF) team's projection of a faster-paced growth in the second quarter for the Philippines is a welcome motivation for local officials, Hous Speaker Martin Romualdez said. 

“This forecast is not only encouraging but also a testament to the resilience and hard work of our nation's people, as well as the sound economic policies and reforms implemented by the administration of President Ferdinand R. Marcos, Jr.,” said Romualdez, leader of the 311-member House of Representatives, in a statement. 

“This positive outlook from the IMF should serve as motivation for us all to redouble our efforts in revitalizing our economy. It is a reminder that our nation has the potential to rebound and emerge stronger from any adversity,” he added. 

A visiting IMF team had said that the country’s growth would pick up its pace in the second half of 2023, and even faster next year. 

The moderate pace of 4.3 percent of the country’s gross domestic product (GDP) in the second quarter, brought the real GDP growth to 5.3 percent for the first semester of the year. 

But economic managers are confident the target growth rate of 6-7 percent remains attainable. 

During a meeting with Romualdez Wednesday afternoon, Sept. 27, the IMF team led by mission chief Jay Pereis said the Philippine economy has the potential to catch up in the second half of the year and faster growth in 2024 despite signs of a global slowdown compared to 2023. 

Among others, the IMF team cited the expected early enactment of the 2024 national budget as well as various laws providing an improved competitive edge to the country in terms of attracting foreign direct investments. 

The IMF team said “the early passage of the budget could make a big difference” as funds for infrastructure projects and social amelioration can be frontloaded in the first quarter to offset the effect of low government spending. 

Among the key factors cited by the IMF team for the positive outlook include the passage of the following laws to attract more foreign direct investments (FDIs):

•Foreign Investment Act—allowing first-time foreign investors to fully own domestic enterprises in the Philippines, 

•Retail Trade Liberalization Act—reducing the minimum paid-up capital requirements for foreign retail enterprises, 

•Public Services Act—whereby foreign investors can now own 100 percent of public services projects in the country.  

The IMF team also noted the impending enactment of other measures meant to make the country an ideal destination for FDIs:

•Amendment to the Build-Operate-Transfer (BOT) /Public-Private Partnership (PPP) Act, which the House passed in December 2022 and the Senate approved recently on third and final reading. 

•Fiscal Regime for the Mining Industry Act, which the House has approved on third reading on Tuesday. 

“We understand that there is still work to be done to ensure this projection becomes a reality. The government will continue to focus on policies that promote economic stability, job creation, and sustainable growth. We will also work to improve the investment climate and further enhance our economic resilience in the face of external shocks,” Romualdez said. 

The House of Representatives passed the P5.768-trillion General Appropriations Bill (GAB) or proposed national budget for 2024 last Wednesday night.