Prepare for worst in 2023, lawmaker urges government

MANILA, Philippines — A senior opposition lawmaker has warned the Marcos administration to not rest on its laurels like the recent robust economic growth, but should prepare for the projected “looming global recession” in fiscal year 2023.

Rep. Gabriel Bordado Jr., who replaced the Camarines Sur district position that former vice president Leni Robredo left in 2016, said he sees bleak prospects ahead, based on the continuous surge in United States interest rates, record-high inflation, unresolved Ukraine war, among others.

“We do need to protect our people from the impact of the global recession as well as the real and direct consequences of an economy that is very vulnerable to the shocks caused by global conflict,” Bordado said.

The third-term congressman, who belongs to the official minority bloc at the House of Representatives headed by Minority Leader Marcelino Libanan, conceded that while the local economy “appears to be resilient,” there is still a need to “prepare” for the worst.

Bordado made these remarks in his recent privilege speech, noting that issues brought about by global conflict, like the Russian invasion of Ukraine, and the worsening climate crisis spawning extreme weather events and calamities, need to be solved.

The Philippines was in recession in late 2020 due to the COVID-19 pandemic.

Bordado also highlighted the country’s vulnerability to “external forces” or developments either in the Asian region or globally, being a “country highly dependent on imported commodities.”

Last August, the balance of trade reached a record high deficit of $6 billion.

While it narrowed down to $4.8 billion in September, the continued negative balance of trade only highlights the fact that the country needs to seriously come up with measures to address self-sufficiency, food security and lesser dependency on imports, according to the lawmaker.

While the cautious Bordado raised the specter of yet another domestic recession, Speaker Martin Romualdez is optimistic about the country’s chances of being over the hump by next year, as shown by the steady economic growth for several quarters now.

“I have no doubt on my mind that we can all fully recover from this crisis if we are united. The best is yet to come, if we come together and work hard together. This is for our country, our future,” Romualdez said.

“The President has an Agenda for Prosperity. This agenda has as its core mission the country’s economic transformation towards inclusivity and sustainability,” he added.

The House leader credited the Marcos administration’s Medium-Term Fiscal Framework and its eight-point socio-economic agenda for the economic expansion, which Romualdez said surprised many analysts.