PH to pursue 'high-quality' investments to spur growth amid headwinds

The Philippines will pursue “high-quality” investments to spur growth following the impact of both the flood control corruption scandal and the Middle East conflict on economic growth, a top official said Thursday.

According to Department of Budget and Management (DBM) Secretary Kim Robert de Leon, the administration will place greater emphasis on quality infrastructure spending and stronger governance.

“Looking ahead, the government intends to pursue strategic, high-quality public investments supported by stronger project preparation, integrated infrastructure master planning and improved budget execution to sustain long-term growth,” he was quoted as saying by Palace Press Officer Undersecretary Claire Castro in a briefing.

This comes as Economic Planning Secretary Arsenio Balisacan said the inter-agency Development Budget Coordination Committee (DBCC) has cut the economic growth target to 3.5% to 4.5% from 5.0% to 6.0% previously.

“The government recognizes the recent external and domestic developments including geopolitical uncertainties, and the need to strengthen governance and quality in infrastructure implementation require a measure policy response,” de Leon said.

The Philippine economy grew by 2.8% in the first quarter of the year, slower than the 5.4% a year ago, and the weakest since the 3.8% contraction during the COVID-19 pandemic lockdown in the first quarter of 2021.

Balisacan earlier attributed this to the combined impact of the flood control corruption controversy, along with the conflict in Middle East which triggered higher global oil prices and renewed supply chain pressures. — BM, GMA News