Dominguez: There is reason to be confident in the Philippine economy

MANILA, Philippines — There is reason to be confident in the Philippines’ growth story, Finance Secretary Carlos Dominguez III said Friday, adding that the economy can weather headwinds.

“The global economy, to be sure, could pose numerous challenges to our growth in the coming period. We are looking at the possibility of increased protectionism and some uncertainty that could affect oil prices,” Dominguez said at a forum in preparation for President Rodrigo Duterte’s third State of the Nation Address.

“Notwithstanding, our numbers all point to a positive direction. We are doing the right things at the right time,” he added.

In the first quarter of 2018, the Philippines remains one of the best performing economies in the region after it grew 6.8 percent, although the expansion pace did not meet the government’s expectations.

Socioeconomic Planning Secretary Ernesto Pernia earlier said inflation “spoiled” the country’s economic growth in the first three months of the year. 

Inflation accelerated to 5.2 percent in June from May’s 4.6 percent. Year-to-date, inflation averaged 4.3 percent, above the Bangko Sentral ng Pilipinas’ 2-4 percent target range.

“We are confident that with the relaxation of oil prices in the global market, the consolidation of the peso’s exchange rate and the normalization of rice supply, we can pull back the inflation rate to within target range,” Dominguez said.

Speaking at the same pre-SONA forum, Pernia said Duterte’s speech is expected to be “cheered on,” particularly on the economic and infrastructure fronts.

“The economy is also undergoing structural transformation as growth is now increasingly being driven by investments vis-a-vis consumption on the demand side, and by the industry sector relative to the services sector on the supply side,” he explained. — Ian Nicolas Cigaral