PH economy must increase by 6% to reduce pandemic-related debt

MANILA – The Philippine economy must expand at a quicker rate than its pre-pandemic level of approximately 6 percent in order for the government to cut the debt accumulated as a result of the coronavirus disease 2019 (Covid-19).

Finance Secretary Carlos Dominguez III said in an interview over Bloomberg television on Thursday that there is no issue regarding the repayment of the debt incurred during the pandemic since these have favorable interest rates and terms, which is around 40 years.

“We’re not worried about the repayment. We have to really grow out of the debt. In other words, expand our economy by better than 6 percent per year, over the next five or six years,” he said.

According to the Department of Finance (DOF), it has raised around USD22.55 billion in budgetary support financing from the Asian Development Bank (ADB), the World Bank (WB), the Asian Infrastructure Investment Bank (AIIB), among others, and USD3.25 billion in grants and loans financing for projects and programs targeted to address the virus-induced crisis.

The inter-agency Development Budget Coordination Committee (DBCC) has set the gross domestic product (GDP) target for this year to between 7 to 9 percent, while it is between 6 to 7 percent for 2023-2024.

The volume of borrowings accumulated due to the pandemic, Dominguez said, is understandable given the need to boost financing amidst the drop in revenues because of the lockdowns.

“So the next administration will have to design policies and stick to very strict fiscal discipline to grow out of debt,” he said.

However, Dominguez stated that “everything is in place in the Philippines to achieve that”, citing the recovery of the domestic economy, which beat the government’s 5.5-percent target for 2021 after it expanded by 5.7 percent.

The impact of the Ukraine-Russia war, he added, is one of the risks this year.

According to Dominguez, while the Philippines is not directly affected by the war, it is affected by the rise in the prices of oil and commodities in the international market.

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  76. 글의 수준이 매우 높네요 저는메이저놀이터추천에 관한 블로그에 관심이 몹시 좋아 합니다.과거와는 다르게 비슷한 주제로 최고의 게시글을 확인하는 것은 쉽지 않습니다

  77. 잘 읽었습니다 저는토토에 관한 비슷한 글에 관심이 몹시 많습니다.요즘 비슷한 엄청난 게시글을 가독하는 것은 드뭅니다

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  89. 정말 대단하시네요! 저는컬쳐랜드에 관한 정보에 관심이 정말 많습니다.이번주 들어 관련있는 최고의 정보를 제공하는 글을 확인하는 것은 쉽지 않습니다

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