He noted these in an interview with the Japanese media.
During an conversation last Monday, May 18, President Ferdinand Marcos Jr. expressed optimism that the Philippine economy will rebound through the government’s implementation of various measures.
He noted the government has kept the economic machine running and continues to invest in it. “Luckily, I suppose, or at least we are still continuing to see marked interest in investment in the Philippines,” the Chief Executive told.
“And perhaps this is because of the policies that we adopted, the incentives that we have put out for investors. So slowly, we can see the way through this, where we will recover through this.”
The concern was about stagflation, in which the gross domestic product (GDP) growth becomes stagnant, while inflation continues to increase, the President explained, adding that the government is trying to control.
“And so that is very important because we want to keep the system, the economic system, continuing to function. We have done all these measures to keep inflation down,” Marcos noted. “And the public spending has been accelerated so that the GDP growth is still being assisted. We had a delay in public spending in the beginning of this year, basically in the first quarter.”
To boost growth, government spending has been directed more towards direct spending so that ordinary people can immediately feel the government’s assistance, he furthered.
Among the moves include the provision kf benefits to the people who need support, such as subsidies and discounts, particularly fuel discounts in the transport sector.
And to keep the economy going, the government has to find new ways of doing business, telling reporters: “We have to find new ways of encouraging investment. We have to find new ways of supporting MSMEs (Micro, Small and Medium Enterprises) because MSMEs comprise 95 percent of our businesses in the Philippines and about 63 percent of our employment.”
“If we keep those sectors strong, I’m confident that although we will feel the effects of the oil crisis, I think that we will be able to mitigate many of the effects,” added Marcos.
ON TRUMP-XI MEETING
Meanwhile, the President also commented on the recent high-level meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
He underscored the importance of continued dialogue between the world’s two largest economies and military powers that could foster diplomatic engagement and cooperation.
Marcos said the engagement between the leaders could also benefit the global economy and consumers, particularly if it helps ease trade tensions.
“It is always very encouraging to see when the two nations, such as China and the United States, can still come together and communicate with one another. And the two presidents to directly be communicating is extremely important,” said Marcos on his counterparts.
He continued, “It does not matter how difficult the situation is, how large the conflict is, but if you stop talking, then immediately there is no chance of success. So that is why to see that there is a continuing dialogue, there are continuing exchanges between China and the United States, that is very, very important for us.”
During Trump’s three-day summit in Beijing, the US President and President Xi focused on stabilizing the global economy and easing geopolitical tensions.
In terms of trade, the President said he expects trade disagreements to diminish and that there will be more cooperation as a result of the Trump-Xi talks, which Asian economies could also benefit from.
While there is aggressive competition among countries, there must also be cooperation, said President Marcos, who added that is “good for our consumers, it’s good for the strength of our economy.”
“And that for me is going to bring the synergy, and that is what I hope that the meeting between President Trump and President Xi Jinping will achieve that synergy,” the Philippine leader said.
“I’m hoping at least at the very least that there will be less confrontation in terms of the economies.”
And it also extends to the military rivalry between the US and China that Asia sometimes witnesses, said the chief executive, stressing it is always good when leaders of the two powerful countries meet.
“There are issues, they’re very complicated, many complicated issues that have to be discussed and have to be agreed upon, but nonetheless, it is encouraging to see that the two leaders got together,” the President furthered.