Manila: Finance Secretary Ralph Recto on Thursday said the 5.4 percent economic growth in the first quarter of the year shows the sustained resilience of the Philippine economy despite rising global volatilities. In a statement, Recto emphasized that the Philippines continues to grow among the fastest in the ASEAN region, outpacing Indonesia, Malaysia, and Singapore.
According to Philippines News Agency, Recto highlighted the continued strength and resilience of the Philippine economy amid rising global uncertainties. He pointed out that the country's growth remains robust, inflation is easing, private consumption is on the rise, and the job market is vibrant. These factors signal accelerating domestic demand, which serves as a strong defense against external challenges and trade wars.
The Finance chief expressed confidence in achieving the government's 6 percent economic growth target in the coming quarters. This optimism is driven by steady fiscal consolidation, easing inflation, and progress in trade negotiations with key partners, among other initiatives.
Revenue collections in the first quarter saw an increase, with Recto crediting the strong performance of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC). Tax collections reached PHP931.5 billion, marking a 13.55 percent increase compared to the same period last year.
With inflation settling at 1.4 percent in April, Recto expects private spending to further improve. The cooling inflation provides the Bangko Sentral ng Pilipinas (BSP) with more room to cut policy interest rates, which could enhance the spending power of Filipinos, attract more investments, and boost economic growth.
Private investments are also anticipated to rise with the implementation of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.