Economy
From The Report: Philippines 2021
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The Philippines is one of the fastest-growing economies of the past decade, averaging 6.4% growth per year over 2010-19. Indeed, an expanding and youthful population, combined with reforms and an ambitious infrastructure programme, have made it an enticing investment destination. Nevertheless, as is often the case in emerging markets, challenges regarding inequality – particularly the distribution of wealth and services – remain barriers to growth. The Covid-19 pandemic tested the country’s resilience in 2020, impacting major sectors. The Philippine government launched a four-pillar socio-economic strategy to mitigate the impact of the pandemic and aid the national recovery effort. The framework aims to provide emergency support for vulnerable groups and individuals; expand medical resources to fight Covid-19 and ensure the safety of health workers; implement fiscal and monetary initiatives to keep the economy afloat; and launch an economic recovery plan to create jobs and sustain growth. This chapter contains interviews with Carlos Dominguez, Secretary of Finance; and Shinichi Kitaoka, President, Japan International Cooperation Agency.

Articles from this Chapter

Overview

A new normal: Positioning the economy to emerge from the pandemic with the ability to generate knowledge-based, inclusive growth
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The Philippines is one of the fastest-growing economies of the past decade, averaging 6.4% growth per year in 2010-19. Indeed, an expanding and youthful population, combined with reforms and an ambitious infrastructure programme, have made it an enticing investment destination. Nevertheless, as is often the case in emerging markets, challenges regarding inequality – particularly the distribution of wealth and services – remain barriers to growth. The Covid-19 pandemic tested the country’s…

Analysis

Strategic support: A blend of policy options seeks to kick-start economic recovery
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The Philippine government launched a four-pillar socio-economic strategy to mitigate the impact of the pandemic and aid the national recovery effort. The framework aims to provide emergency support for vulnerable groups and individuals; expand medical resources to fight Covid-19 and ensure the safety of health workers; implement fiscal and monetary initiatives to keep the economy afloat; and launch an economic recovery plan to create jobs and sustain growth. Bayanihan 1 & 2 The government…

Interview

Strong fundamentals: Carlos Dominguez, Secretary of Finance, on fiscal policies and tax reforms to facilitate economic recovery from the pandemic
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Interview:Carlos Dominguez To what extent has the country’s fiscal strategy prepared it for the planned P6trn ($119.3bn) worth of borrowings in 2020-21 to address the crisis? CARLOS DOMINGUEZ: The core of our strategy has been to protect both lives and livelihoods. This, of course, comes with significant economic costs at a time when revenue collection is understandably lower because of the pandemic-induced economic downturn. Fortunately, when Covid-19 struck, the Philippines was financially…

Interview

Better together: Shinichi Kitaoka, President, Japan International Cooperation Agency (JICA), on nurturing regional ties
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Interview:Shinichi Kitaoka How can the Philippines create more favourable conditions for Japanese investment? SHINICHI KITAOKA: Japan is a major source of foreign direct investment in the Philippines and was formerly the country’s second-largest trade partner. With its growing population and relatively inexpensive labour, Japanese companies view the Philippines as a promising investment destination. However, Japanese investors remain concerned about the Philippines’ security conditions,…