State of the Philippine economy 2022
University of the Philippines Professor Rene Ofreneo shared the following select data from the Department of Finance and NEDA that all Filipinos should know:
Inflation target which was projected at 2.0-4.0% for the whole year of 2022 was actually 7.0% as of September, 2022 (and 7.7% in October).
The peso-dollar rate which was projected to be at P48.53:$1 plunged to P59:$1 by October 2022.
On Philippine current account, the Central Bank revised the forecast for 2022 from the earlier projected $6.7 billion surplus to $20 billion deficit.
Gross International reserves projected at $117.0 (good for 11.1 months’ imports) for 2022 was, by September 2022, actually $93.B (>8 months’ imports).
Debt to GDP (gross domestic product) ratio which went down from 39.9 to 39.6 in 2018 went up to 60.4 by 2022.
Do you think most Filipinos know that according to the Bureau of the Treasury, debt stood at P12.76 trillion as of end-April, 0.7% or P83.4 billion more than in March?
That of these, “30% was sourced externally while 70% were domestic borrowings”?
Dr. Dennis Mapa of the Philippine Statistics Authority reported that “the Philippine GDP rose to 7.6% in the third quarter of 2022.
Major economic sectors also posted growth; agriculture, forestry and fishing (2.2%), industry (5.8%) and services (9.1%).
Mapa also shared that unemployment rate fell to 5% in September, “about 50 of 1,000 individuals in the labor force without job, with about 2.5 million Filipinos unemployed or 183,000 lower than the 2.68 million citizens with no jobs the previous month, or lower by 1.78 million from 4.28 million unemployed a year ago.”
According to Economic Planning Secretary Arsenio Balisacan, “the recent survey results show the gains of the full reopening of our economy.”
He cautioned, however, that “while these developments are remarkable, I want to underscore that our nation still faces a considerable burden in the form of high inflation."
Balisacan said “the government remained committed to fighting inflation to protect people's purchasing power, including by tightening monetary policy.”
Secretary General Josua Mata of the Sentro ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO) pointed out that “the economy is not creating enough good jobs for Filipinos” as reflected by the recently reported high underemployment rate (15.4%) which confirm that many Filipinos are taking on low-skill, low-paying, or part-time jobs due to the lack or absence of full-time jobs that offer sufficient salaries that match their skills.
According to NEDA, the government is committed to improving the quality of jobs in the country to address underemployment.
Balisacan stressed that “ensuring food security remains as our top priority. In the immediate term, the government is providing targeted cash transfer as well as fuel and crop subsidies to help protect the purchasing power of Filipinos and reduce the incidence of invisible underemployment among low-income households.”
He added that “we aim to strategize for a more efficient labor market by improving the quality of education, providing opportunities for lifelong learning, skills development and options to obtain micro-credentials, enhancing job facilitation programs and strengthening linkages among industry, business and training institutions.”
Balicasan also raised the “need to boost disaster resilience and climate adaptation measures.”
A recent World Bank report also advised that “existing social protection system in the Philippines be strengthened/scaled up to support sectors/groups” most vulnerable to “climate shocks that will hamper economic activities, damage infrastructure, and induce deep social disruptions.”
Do you think a patronage-beholden Congress and a confidential-fund obsessed president and vice president will move and synchronize with NEDA to genuinely/urgently address our people’s present, urgent/difficult multiple challenges/crises that include poverty, hunger, poor health, inadequate education, high unemployment/underemployment , homelessness, poor service delivery, climate-related calamities, COVID-19, and more?
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