President Marcos’ chief economic manager stated that low and steady inflation in January gives the central bank room to cut key borrowing costs further to spur economic growth.
“This is a strong indicator of the government’s commitment to keeping prices stable and signals that the BSP [Bangko Sentral ng Pilipinas] has more flexibility to further reduce interest rates,” said Finance Secretary Ralph G. Recto, referring to the January inflation rate which remained unchanged since December 2024.
“Lower interest rates mean cheaper borrowing costs for our consumers and businesses. This will provide greater purchasing power for our people and stronger momentum for investments and growth,” Recto explained.
The January inflation rate of 2.9 percent followed the slower-than-expected 5.6 percent gross domestic product (GDP) growth in 2024. This GDP figure missed the revised growth target of 6.0 to 6.5 percent set by the Marcos administration for 2024.
Meanwhile, the Philippines recorded its highest employment rate in 19 years as about 50 million Filipinos secured jobs in 2024.
Latest data from the Philippine Statistics Authority (PSA) showed that the number of employed Filipinos increased by 670,000 in 2024, reaching 48.85 million from 48.18 million in 2023.
Notably, unemployment and underemployment rates last year reached their lowest levels since 2005.
Citing this, Recto said that “quality jobs for Filipinos are also on the rise,” further assuring the public that the government will continue to implement programs that will provide more high-quality jobs locally.
“And we do not just aim to simply create jobs,” he said. “We are focusing heavily on improving education, infrastructure, and human development to ensure that we build a Filipino workforce equipped with the tools and opportunities they need to compete on the global stage.”
He likewise noted the strong interest of international investors to the Philippines, citing the strong Filipino workforce.
“During my engagements with global investors at the World Economic Forum in Davos, they consistently expressed high praise for Filipino talent. This is an opportunity the government is determined to fully harness and maximize, especially as the world transitions to using Artificial Intelligence (AI).”
Following this, the finance chief committed to capitalize on the strong investment interest and workforce upskilling support the Philippines received at the recent economic forum.