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Philippines: PCCI cautiously optimistic on economy
MANILA, Philippines — Business group Philippine Chamber of Commerce and Industry (PCCI) has a cautiously optimistic outlook for the country’s economy this year, with high food prices as an issue of concern.
“Our economy will sustain a healthy pace in the first half of the new year. Although there may still be interest hikes mirroring the US and European Union’s actions to mitigate infla-tion, remittances and the rebounding local economy can weather it,”PCCI president George Barcelon said in a statement yesterday.
Barcelon said an issue of concern is for the government to find solutions to high food prices that have heightened the clamor for big wage adjustments, which could lead to even higher inflation.
“This is a vicious cycle that could stunt business and negatively impact the competitiveness of the export sector. As such, the outlook on both job creation and sustainability for the year may encounter headwinds,” Barcelon said.
He said the mitigation of COVID-19 and opening of schools would add to economic activities.
“Government’s plans to continue infrastructure spending and massive housing projects for the homeless will certainly give impetus to our economy,” Barcelon said.
“From worldwide trends, travel and leisure businesses are coming back strong. The recent trip of President Marcos has achieved China’s support for our tourism and agricultural sec-tors,” he said.
During the President’s state visit to China, Tourism Secretary Christina Garcia Frasco signed the implementation program on tourism cooperation with China’s Culture and Tourism Minis-ter Hu Heping.
“This implementation program with China will generate massive employment opportunities and investments across all sectors of tourism throughout the Philippines. Our governments will work together on increasing tourist arrivals, resuming and adding direct flights to key and emerging destinations, joint promotional activities, and inviting tourism investments in infra-structure, among others,” Frasco said.
Meanwhile, the Department of Trade and Industry (DTI) said the Philippine delegation pushed for an increase in the number of Philippine fresh produce with access to the Chinese mar-ket and confirmed that the market for durian fruit is now open to Philippine exporters and Chinese importers.
“Following the signing of the protocol on market access for Philippine durian to China, participating companies conveyed purchase intentions for Philippine fruits of as much as $2.09 bil-lion,” the DTI said.
It said that a total of $1.72 billion worth of investment pledges were gathered in areas such as durian production, processing and marketing, coconut and other food processing, as well as in alternative green technology for animal feeds and other agricultural products.
A Filipino-Chinese business federation earlier said that it expected the Philippine economy to grow between 6.5 percent and 7.5 percent this year, driven by positive economic and de-mographic fundamentals.
“We at the Federation of Filipino-Chinese Chambers of Commerce and Industry Inc. are optimistic that Philippine economic growth in 2023 shall be between 6.5 and 7.5 percent and that Asian economic recovery shall continue, despite many gloomy forecasts about world economic recession next year due to expected USA recession, global inflation, high interest rates and EU economic turmoil due to the Ukraine war with Russia,” FFCCCII president Henry Lim Bon Liong said earlier.
“The Philippines is still a source of hope and recovery for Asia due to our positive economic and demographic fundamentals, and with the earnest leadership of President Marcos com-mitted on upgrading infrastructures, improving agriculture and pushing many reforms,” Lim said.
Source: https://www.philstar.com/business/2023/01/10/2236440/pcci-cautiously-optimistic-economy