Bangko Sentral ng Pilipinas governor Benjamin Diokno. (Photo: Interaksyon)
MANILA — The incoming Marcos administration will be inheriting a “much better economy” than what President Rodrigo Duterte inherited from the previous Aquino government in 2016, according to Bangkio Sentral ng Pilipinas (BSP) governor Benjamin Diokno.
“In over a month from now, President Rodrigo Duterte and his administration will pass the torch to the next administration. Among the things to be passed on is the country’s economy, which has suffered following the Covid-19 pandemic,” Diokno pointed out, adding that despite this, though, president-elect Ferdinand ‘Bongbong Marcos Jr. (BBM) will be endowed with a sound tax system, which had been reformed many times under Duterte’s administration.
Former senator Marcos Jr. won the presidential race with a record 31 million votes.
And as the public awaits Marcos Jr.’s economic plans, experts have been sharing their thoughts on the country’s economic situation—which to most of them believe is in a solid shape—even as the outgoing administration of the former mayor of Davao City prepares to step down.
Going back to Diokno’s view, he said that “(Marcos Jr.) will also be a recipient of many structural reforms like the amendments of the retail trade act, the foreign investment act and public services act.”
“In other words, this administration will inherit a much better economy than what we inherited from the previous one,” he reiterated while noting that the next administration will also have to face and address an “increase in public debt as a result of the pandemic.”
In 2020, the Philippines suffered a 9.5 percent drop in gross domestic product (GDP)—the biggest since the government started recording yearly output in 1946 or after the Second World War. This, however, became positive in the following year as the Philippine economy’s full-year growth bounced back and reached 5.6 percent after the easing of Covid-19 quarantine rules.
“Before the pandemic the debt to GDP ratio of the Philippines was at the neighborhood of 39.6 percent. Now it rose to 60.5 (percent) because of the COVID-19 response and the accompanying drop in revenues,” Diokno pointed out.
“But this level is pretty much manageable as long as we continue to grow at between 6 to 7 percent in the next few years,” the central bank governor concluded. (T. Cabrera/ai/mtvn)