ARTICLE REVIEW

Philippines: Paving the Way to a Robust Economic Future

By Benjamin E. Diokno, Secretary of Finance

Introduction:

This article discusses, despite the many challenges in the Philippines in 2023, it was
able to maintain a stable economic performance. This is largely due to proactive government policies
that mitigate the impact of global economic challenges and local issues. The country's economic growth
is expected to continue in 2024, with the Philippine economy expected to be one of the fastest growing
economies in Asia. The Philippines is on track for a solid economic performance as evidenced by other
economic indicators such as the Purchasing Managers Index (PMI), the growth of automobiles, and the
expansion of the digital sector.

Body:

The Philippine economy is expected to grow close to the low end of the 6.0 to 7.0
percent growth target for 2023, despite a challenging global environment and existing domestic
challenges. The growth is expected to be driven by the services and industry sectors, and will be
supported by robust domestic demand, low unemployment rates, and strong inflows of remittances
from overseas Filipinos. The government's direct measures to mitigate the impact of supply-side factors
on inflation and its commitment to a fiscal consolidation path through the Medium-Term Fiscal
Framework (MTFF) are expected to improve fiscal performance over the next 24 months.

The manufacturing sector continues to support growth, with the PMI for the
Philippines generally recorded above the 50 threshold in the first 11 months of 2023. The expansion of
the digital sector is also evident, with the use of digital payments in financial transactions deepening.
The external sector is improving, with the Balance of Payments (BOP) position forecasted to be at a
surplus this year. The fiscal policy is sound, with the 2023 fiscal numbers - the National Government
(NG) debt-to-GDP and deficit-to-GDP ratios - within the parameters of the Medium-Term Fiscal
Framework (MTFF). The Philippine peso continues to appreciate, settling at 55.57 per US dollar on
December 29, 2023. Remittances, export revenues from Business Process Outsourcing (BPO) firms,
tourism receipts, and foreign direct investments (FDI) will remain as stable sources of foreign exchange.
The current gross international reserve (GiR) level remains well above the IMF's Assessing Reserve
Adequacy metric. The Philippines' low external debt-to-GDP ratio reflects the country's robust external
fundamental.

The article discuss the economic outlook of the Philippines for the year 2024. It
mentions that despite the challenges posed by multilateral organizations projecting a slower global
economy, the Philippine economy is expected to improve. The DBCC assumes a growth rate of 6.5 to 7.5
percent for the country in 2024. The article also highlights the efforts of the Philippine government in
improving its economic position, such as the implementation of the Public-Private Partnership (PPP)
Code and the Maharlika Investment Fund (MIF). The economic team is also working on improving the
investment environment in the country through measures such as the Anti-Red Tape Authority (ARTA).
The article also mentions the efforts of the Bangko Sentral ng Pilipinas (BSP) in managing inflation and
maintaining macroeconomic stability. Furthermore, the article discusses the country's external position,
which remains strong to withstand external vulnerabilities. Lastly, the article mentions the ratification of
the Regional Comprehensive Economic Partnership (RCEP) and other Free Trade Agreements (FTAs),
which are expected to facilitate trade diversification and create more and better jobs.

Conclusion:

The Philippines is poised for a robust economic future, with strong indicators in
various sectors such as manufacturing, digitalization, and the external sector. The fiscal policy is sound,
the peso is appreciating, and remittances, export revenues, tourism receipts, and FDI remain stable. The
GiR level is well above the IMF's Assessing Reserve Adequacy metric, and the Philippines has the lowest
external debt-to-GDP ratio among the ASEAN-5 countries.
May 10, 2024

Mr. David Alexander Dela Cruz

Principal

President Dios Dado Macapagal Memorial National High School

Bulaklakan, Gloria Oriental Mindoro

Dear Mr. David Alexander Dela Cruz

I am writing to you to express my desire to serve as an English teacher in your institution. I have just
achieved my Bachelor’s degree in Secondary Education major in English. In the past year, I was assigned
to have my practice teaching in Sacred Heart Academy.

I was able to develop my communication skills and I believed that it helped me to be more prepared to a
greater challenge which is to finally embrace the job of being a full-time educator. I am confident that
I’m ready to work and do the responsibilities of a teacher and I know that your reputed institution can
give me an opportunity to continue to develop myself professionally. I am willing to undergo series of
workshops and lectures if you ask me to do so when you hire me. I am hoping that you will give me an
opportunity to have my first teaching experience in your reputed school.

Thank you for considering my application. I am waiting for your positive response.

Sincerely,

Erica M. Bolaños