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 said the Philippines continued to grow among the fastest in the ASEAN region, outpacing Indonesia, Malaysia, and Singapore.
“Our performance highlights the continued strength and resilience of the Philippine economy, even amid rising global uncertainties. Our growth is strong, inflation continues to ease, private consumption is rising, and our job market remains vibrant. These are clear signals of accelerating domestic demand ahead, which is our strongest shield against external headwinds and trade wars,” Recto said.
The Finance chief said the government is confident in achieving its 6 percent economic growth target in the coming quarters, driven by steady fiscal consolidation, easing inflation, and progress in trade negotiations with key partners, among other initiatives.
In the first quarter of the year, revenue collections rose which Recto credited to the strong performance of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC).
Tax collections in particular reached PHP931.5 billion, a double-digit increase of 13.55 percent compared to the same period last year.
As inflation continues to cool down, settling at 1.4 percent in April, Recto expects private spending to further improve.
He said easing inflation provides more room for the Bangko Sentral ng Pilipinas (BSP) to further cut policy interest rates to help boost the spending power of Filipinos, attract more investments, and boost economic growth.
Private investments are also expected to increase with the implementation of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act. (PNA)
