Malaca±ang: On Friday, Malaca±ang welcomed the slowdown in headline inflation to 1.5 percent in November, viewing it as a positive sign for the country's economic recovery. In a statement, Executive Secretary Ralph Recto said Filipinos can expect a stronger and more resilient economy in the coming months as the government keeps inflation under control while strengthening governance measures to boost investor confidence.
According to Philippines News Agency, Recto emphasized that the November inflation figure, which eased from 1.7 percent in October, brought the year-to-date inflation rate to 1.6 percent, well below the government's target range of 2 to 4 percent. He attributed the decline in headline inflation to the Marcos administration's intensified efforts to stabilize prices and secure the supply of key commodities such as rice, vegetables, and meat.
Recto highlighted that the country's low and stable inflation is among the strengths acknowledged by S and P when it reaffirmed the Philippines' 'BBB+' high investment-grade rating with a Positive Outlook. He stated that a high credit rating signals investors' strong vote of confidence in President Ferdinand R. Marcos Jr.'s leadership.
Recto noted that lower prices, combined with a strong labor market, are expected to further stimulate domestic demand and consumption, contributing to above-average growth relative to regional peers. The Bangko Sentral ng Pilipinas (BSP) now has more room to adjust policy rates, which could further boost household spending and economic activity, he added.
The government is taking steps to encourage private sector investment, including the temporary suspension of all field audits and related operations of the Bureau of Internal Revenue (BIR) in response to taxpayers' concerns. Recto cited other initiatives, including regulatory streamlining and upcoming investment opportunities, particularly in agriculture.
Recto also emphasized ongoing efforts to enforce transparency and accountability, such as investigations into the flood control anomaly, the auction of illegally-acquired luxury vehicles generating PHP38.2 million for the National Treasury, and the freezing of PHP 13 billion in assets by the Anti-Money Laundering Council (AMLC).
He mentioned that key reforms like the Public-Private Partnership (PPP) Code, CREATE MORE Act, Enhanced Fiscal Regime for Large-Scale Metallic Mining, Capital Markets Efficiency Promotion Act (CMEPA), and Investors' Lease Act are anticipated to enhance productivity and attract foreign investments.
Furthermore, the government continues to prioritize infrastructure rebuilding in calamity-hit areas and ensures disciplined spending in the proposed PHP6.793-trillion national budget for 2026, focusing on programs with high multiplier effects such as education, agriculture, health, and social services.
In a press briefing, Palace Press Officer Claire Castro remarked that the public may not fully grasp technical economic indicators but emphasized that the government's record on inflation and governance speaks for itself.
