With cornerstone reforms set, the economy is now building “strong momentum” as one of the fastest growing economies in the region, with a focus on driving down poverty, top government officials said.
The Duterte administration’s economic development and infrastructure Cabinet clusters — led by the Secretaries of Finance and Public Works and Highways, respectively — kicked off the first of three pre-State of the Nation Address (SONA) forums on Friday to tout their achievements over the past year.
“Our economic strategy is anchored on two major programs:The comprehensive tax reform program and the Build, Build, Build infrastructure modernization already in place,” Finance Secretary Carlos G. Dominguez III said in a speech during the forum held at the Philippine International Convention Center.
“We are clearly building on a strong momentum,” he said.
“Notwithstanding, our numbers all point to a positive direction,” Mr. Dominguez said. “We are doing the right things at the right time. There is reason to be confident in the Philippines’ growth story.”
Socioeconomic Planning Secretary Ernesto M. Pernia, meanwhile, said that the Philippines will “join the ranks of upper middle-income countries by end-2019.”
The economic managers also sought to tame down concerns over rising inflation, assuring that the spike is only temporary and natural for a fast-growing economy.
“While slightly elevated, the inflation rate during the first six months of the year is understandable,” Mr. Dominguez said. “Economies expanding at a fast clip tend to put pressure on supply. This is particularly true of our economic performance.”
“We can pull back the inflation rate to within target range,” he added.
Mr. Dominguez explained that the tax reform program stoked consumer spending, in turn driving demand up. This is also supported by more consumer savings from the free tuition and free irrigation programs. — Elijah Joseph C. Tubayan

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