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Monitoring The Philippine Economy State Of The Economy Report, Mitzie Irene P. Conchada, Lawrence B. Dacuycuy, Jesus Felipe, Desher Edgar Empeño, Brendan Emmanuel A. Miranda

Angelo King Institute for Economic and Business Studies (AKI)

The Philippine economy recovered from the COVID-19 pandemic during 2022. It posted a very high annual growth rate, 7.6%, although this must be understood in the context of a low base. AKI’s State of the Economy Report focuses on three issues in the context of the new Administration’s 8-Point Socioeconomic Agenda and the Philippine Development Plan 2023-2028: growth, inflation, and the fiscal deficit and national debt. Overall, we have a positive view of the economy over the medium and long-term. However, we argue that:

-The focus of economic policy has to shift decisively toward changing the structure of the economy …

National Debt And The Misleading Family Metaphor: A Message To The Economic Managers And Journalists, Jesus Felipe

Angelo King Institute for Economic and Business Studies (AKI)

A recent article in the prestigious British newspaper, The Guardian (“Bad economics at the BBC enabled Tory austerity and its aftermath — and it knows as much,” James Meadway, January 31, 2023), claimed that bad economics by the British Broadcasting Co. (BBC), the reputable British television company, enabled Tory austerity and its aftermath. A BBC internal review noted that too many journalists don’t get “basic economics,” with a negative effect on U.K. politics. The review refers to taxation, public spending, government borrowing, and debt output. Poor information is particularly serious when it comes to reporting on the central political issue …

The Administration’S Objective To Reduce The Fiscal Deficit To 3% Of Gdp By 2028: Why And How?, Jesus Felipe

Angelo King Institute for Economic and Business Studies (AKI)

A few weeks ago, the author attended a presentation on the Philippine economy and prospects for 2023. A discussant from the Department of Finance indicated that the Administration aims at reducing the fiscal deficit from 8.6 percent of gross domestic product in 2021 (the result of the COVID pandemic) to 3 percent by 2028. She referred to this reduction as “solid fiscal management” that “will promote long-term growth". This article argues that this is a dubious target because the government cannot control the deficit. Moreover, claiming that this reduction will promote long-term growth is poor economics. So is the idea …

Annual Growth Of 6.5-8% Until 2028: How?, Jesus Felipe

Angelo King Institute for Economic and Business Studies (AKI)

THE KEY outcomes of President Bongbong Marcos’ Philippine Development Plan 2023–2028—to increase income per capita, reduce poverty, and create employment—rest on a necessary condition: to attain a 6.5-8% annual growth rate through 2023 to 2028. If achieved, the Philippines would resemble its East Asian neighbors, which attained similarly high growth rates decades ago. This is much needed given the still low wages and per capita income of the country. Yet, this “target” poses several questions.