THE Philippine economy is growing faster than expected with a third quarter growth of 7.6 percent for the country’s gross domestic product (GDP), according to the Philippine Statistics Authority. This is good news. The government should not waste any opportunity to sustain this positive momentum of growth.
For one, it needs to ensure that the national budget will support this momentum. For example, addressing the economic agenda of creating more jobs and building the necessary infrastructure to support development should be prioritized.
A number of factors are contributing to the growth momentum of the national economy. Fitch Solutions Country Risk and Industry Research recently revising its 2022 GDP growth projection for the country from the initial 6.6 to 7.4 percent is an indicator of increased investor confidence. Also, the country’s September 2022 unemployment rate at five percent, which is the lowest in more than two years, not only sparks more confidence for investors and businesses but also shows that the current administration’s economic strategy is taking effect.
We need to ensure that the 2023 national budget would have sufficient social and economic support for the current positive growth momentum. The Senate is aiming for a national budget that favors sustainable growth and inclusivity, because no Filipino should be left behind while the economy is growing.
Part of the government’s support for the economic growth momentum should be to ensure food sufficiency, as the rise in food prices is the biggest driver of inflation, which hit 7.7 percent last month.
In the short term, the government can temporarily address food inflation by extending the reduced tariffs on basic commodities such as meat and rice under Executive Order No. 171, which shall expire after Dec. 31 of this year.
But for the medium and long term, the government should focus on food security by supporting the agriculture sector. Our agriculture sector urgently needs support to increase our capability and capacity for food production. By providing such, we hit a lot of birds with one stone: controlling inflation, generating jobs, and improving competitiveness of local food producers.
No Filipino should go hungry as we grow our economy. This is the bottom line.
