Philippines to fix weak spots in US$500 billion economy plan – targets farming and industry

Philippines’ incoming economic planning secretary Arsenio Balisacan plans to bolster the economy’s weak spots as he targets at least 6 per cent annual growth throughout the term of President-elect Ferdinand Marcos Jnr.

The next administration must boost investment in agriculture and manufacturing and build infrastructure to grow the economy between 6 per cent-8 per cent annually to 2028, Balisacan said in an interview Wednesday. Farm and industry output currently account for less than 40 per cent of gross domestic product, while services contributes the majority.

“I would like to see those weakest points as the priority of the administration,” said the 64-year-old, who’s currently chairman of the nation’s antitrust commission.

Consistently growing at the rate of 6 per cent for six years will make Philippines a half-a-trillion dollar economy, according to Bloomberg calculations. The nation’s first-quarter expansion of 8.3 per cent is already among Asia’s fastest, thanks to the reopening from the pandemic. Still, Marcos’s team faces immediate challenges: inflation is at its fastest in three years, budget deficit has widened and the global outlook has dimmed.

Despite those challenges, Balisacan is confident the economy can expand by at least 7 per cent this year, within the official growth estimate, riding the recovery from the record contraction in 2020 due to the pandemic. He said he will push for more targeted support measures to ease inflation’s burden on the poor while ensuring “tight” government finances are managed properly.

“We can achieve more with less,” he said, adding that a review and streamlining of beneficiaries are needed. The nation also cannot afford removal of certain taxes on goods as proposed by some sectors, he said.