Notes on the President's Address Regarding the Philippines' Economic Strategy

Introduction

• Acknowledgment of global challenges leading to economic and trade fragmentation.
• Importance of addressing the specific challenges faced by the Philippines.
• Reflection on the effectiveness of institutions and necessary actions to recalibrate them.
• Emphasis on the need for essential new partnerships.

COVID-19 and Global Economy

• Current global economic conditions highlight the need for cooperation.
• Key Principle: No one is safe until everyone is safe.
• Vision for a society in the Philippines that aligns with development plans and socioeconomic agendas.

Economic Overview

• Global Growth Projections: IMF projects global economic growth at 2.7% for 2023, down from previous years (3.2% in 2022, 6% in prior years).
• Philippine Economic Growth: Projected growth around 7% for 2023, with an optimistic assessment that it may exceed 6.5%.
• Strengths: Strong macroeconomic fundamentals, fiscal discipline, structural reforms, and liberalization efforts.

Investment Opportunities

• Diverse investment opportunities:
  • Renewable energy
  • Agro-processing
  • Transportation
  • Infrastructure development
• Public-private partnerships are in the pipeline.
• Establishment of the first sovereign wealth fund to diversify financial portfolios and generate stable returns, focusing on employment creation and public service improvement.

Addressing Inflation

• Global inflation is accelerating; government response includes:
  • Relaxation of import restrictions on meats and grains.
  • Focus on improving local food production and agricultural sector recovery.
• Plans for modernization and innovation in agriculture:
  • Development of new farming and fishing technologies.
  • Adoption of climate-resilient technologies.

Engagement with Trading Partners

• Strengthening engagement with trading partners and utilizing Free Trade Agreements (FTAs).
• Importance of economic and technical cooperation for smaller economies and untapped potential in the global economy.

Energy and Food Crises

• Development plan aimed at inclusive and resilient development addressing energy, climate, and food crises.

Harnessing Technologies for Innovation

• Amendments to Foreign Investments Act to facilitate foreign investment.
• CREATE Act benefits micro, small, and medium enterprises (MSMEs) through reduced corporate income tax rates.
• Updates to Build-Operate-Transfer Law to enhance public-private partnerships.

Digitalization and Long-Term Development

• Digitalization as a key driver for economic transformation post-pandemic.
• Empowering MSMEs to bridge the digital divide.

Education and Workforce Development

• Emphasis on education, skills development, and lifelong learning for worker employability.
• Strengthening public-private partnerships to improve access to employment opportunities.
• Enhancements in health systems and social protection to mitigate risks.

Conclusion

• Overview of the state of the economy and opportunities ahead.
• Commitment to openness in partnerships for a resilient, inclusive, and sustainable future for the Philippines.