PH Economy Remains Resilient Amid Political Issues, Says DOF

The Philippine economy has remained largely unaffected by recent political issues, according to the Department of Finance (DOF). Finance Undersecretary Domini Velasquez stated on Saturday that investors continue to differentiate between the country’s economic conditions and its political landscape.

“Actually, the economy has been barely affected for some time. Investors are able to distinguish between economic and political matters,” Velasquez said during a news forum.

She cited the recent upgrade of the Philippines’ credit rating by Japan’s Rating and Investment Information Inc. (R&I), which highlighted the country’s stable growth and improving national income as key factors.

“Even investors continue to come in, indicating that politics is, in many ways, a separate matter,” Velasquez added.

Comparing the situation to Thailand, which experienced a weakened economy due to political turmoil, Velasquez emphasized that the Philippines has not faced similar economic downturns despite its own political challenges.

R&I recently upgraded the Philippines’ foreign currency issuer rating to “A-” with a stable outlook. This rating reflects the country’s high creditworthiness, supported by strong public and private sector investments, the development of domestic industries such as business process outsourcing, and favorable demographic trends.

Meanwhile, the Department of Budget and Management (DBM) reported that government spending reached P5.336 trillion in 2023, surpassing the previous year’s expenditures. The budget for 2024 authorizes a spending program of P5.767 trillion.

Lifting 8 Million Out of Poverty

Velasquez also expressed confidence that the government will achieve its goal of lifting eight million Filipinos out of poverty by 2028. “We need to lift eight million people out of poverty by 2028. That is doable,” she stated.

She emphasized that Filipinos should experience daily improvements in their lives, reflecting the government’s commitment to ensuring that economic gains translate to better living conditions for all.

President Ferdinand “Bongbong” Marcos Jr. has reiterated his administration’s commitment to improving the lives of Filipinos amid recent economic advancements.