The Philippine economy is fundamentally strong because the government is pushing for accountability and reform: finance chief
Philippine Finance Secretary Ralph Recto on Monday asserted that the Philippine economy remains “fundamentally strong,” with strong foundations and continued investment opportunities, even as the Marcos administration carries out internal reforms to address governance issues.
“We are not blind to the challenges that exist, nor are we shaken by them,” Recto said in a statement, responding to concerns over the allegations against the Marcos administration.
“Trust is the lifeblood of any economy,” he said. “This keeps investments coming in, businesses growing, and jobs growing. And this trust is protected, strengthened, and rebuilt every day by the Marcos administration.”
He added that the government is implementing a comprehensive catch-up plan to align distribution with national priorities and support faster economic growth.
As Congress continues budget deliberations, Recto urged lawmakers to approve a 2026 national budget that reflects the government’s priorities and reform agenda.
“We must prioritize spending with the highest multiplier effect, enforce fiscal discipline, and implement targeted savings on travel, MOOE, and non-essential spending,” he said, adding that the national budget remains “the most powerful lever in our growth story.”
Recto assured the public that essential services will continue without interruption, high-impact infrastructure projects, including school buildings, will continue, and official programs funded by development assistance will be accelerated.
Reconstruction of infrastructure damaged by recent disasters will also be carried out without delay and with clear and publicly available plans.
The Finance Chief also highlighted the government’s push for government reform, including anti-political dynasty laws, strengthening the party list system, campaign finance transparency, institutionalizing freedom of information, and eliminating all unprogrammed funding allocations except those needed for emergencies.
Recto said the government is intensifying efforts to curb tax evasion and smuggling, with the Bureau of Internal Revenue and Bureau of Customs handling “major cases with time-bound investigations and speedy prosecutions – no delays, no exceptions, no sacrosanct measures.”
He emphasized that the country’s fiscal consolidation path remains on track.
Inflation in October reached 1.7 percent, giving the Bangko Sentral ng Pilipinas more room to lower interest rates and stimulate domestic activity.
Employment data also shows resilience, with wage and salary workers accounting for 64.1 percent, or 31.8 million, of the 49.6 million people employed in the Philippines, Recto said.
He noted that the economy is growing faster than the real cost of borrowing.
By the end of 2025, real interest payments are projected at 3.3 percent, compared with forecast GDP growth of 4.7 to 4.8 percent.
“That means we have more than enough capacity to service our debt, and our debt remains manageable, stable and sustainable,” he said.
Source: Xinhua
