AUG.

17, 2013

NR # 3198B

PH economy now meeting global challenges -- Belmonte

The countrys steady economic growth should not be taken lightly as the global economic giants continue to grapple with recession, Speaker Feliciano Belmonte, Jr. declared before an international business forum. Recession sweeps many parts of the world, including Europe. Tentative growth appears to be the best news from large economies like China, India, and Brazil. Against this backdrop, our countrys strong economic performance is not a small feat, Belmonte told the recent Wallace Business Forum held last Monday, amidst inclement weather. Citing the determined efforts of government to pursue institutional reforms, Belmonte was gratified by the business sectors continuing and growing support that allowed the 15th Congress to pass historic and game-changing laws. With your support, we in Congress have once again earned the trust and confidence of our people, the Speaker said as he anticipates that the 16 th Congress could equal or even surpass the feat of the previous Congress. The Speaker cited the overhaul of the appropriations process, creating the habit of promptly enacting transparent and responsive national budgets, the first ever Reproductive Health Law and the Sin Tax Law which for about 15 years languished in the dust bin of the legislative process. Buoyed by the positive prognosis on the countrys continued economic growth by international development institutions, Belmonte noted the steady improvement in the nations competitiveness rankings, jumping by 22 notches since 2009. Even as the countrys gross domestic product (GDP) grew by 7.8 percent in the first quarter of 2013, erasing the image of the Philippines as the sick man of Asia, Belmonte stressed more has yet to be done. Our growth rate has even outpaced the rest of Asia. With all these positive developments, we can never be complacent. The work is not yet done, he said. To attain sustained growth, Belmonte stressed the need to extricate the economy from being a consumption-driven system to that of production-driven or dynamically mobilized by investments. These investments need to be sustainable, industry-expanding, and job creating, he said adding that the country still has the lowest investment-to-GDP ratio, and the lowest share of foreign direct investments among its regional peers.

To create an environment that is conducive to investments, Belmonte said, we need to maintain macroeconomic stability, while pursuing structural reforms that reduce risks and increase returns on investments. One vital reform avenue the government is pursuing is the adoption of a prudent fiscal policy to enable it to contain its budget deficit and reduce its outstanding debt, he said. Together with the effective management of our monetary aggregates by the Bangko Sentral Ng Pilipinas, we kept our inflation rates low, built up healthy foreign exchange reserves, and stabilized our exchange rate, Belmonte added. The Speaker cited the proposed 2014 P2.268-trillion national spending bill now being deliberated by the House as one vital measure that complies with the same basic tenet of promoting macroeconomic stability and productive capacity through investment in human capital formation and economic infrastructure. The overarching truth that will thread together all reforms is and will always be good governance. Unwavering and staunchly committed leadership will win the day, Belmonte concluded. (30) dpt