The unfolding political drama involving powerful political families has had little impact on the upward trajectory of the domestic economy, the Department of Finance said.
Finance Undersecretary Domini Velasquez stated, "The economy was barely affected for some time. Investors were able to differentiate the economic versus the political."
He cited Japan's Rating and Investment Information Inc. (R&I) recent rating upgrade of the Philippines due to its projected stable growth and continuous improvement of national income.
R&I upgraded the Philippines' foreign currency issuer rating to "A-" with a stable outlook. An "A" rating indicates that the country has "high creditworthiness supported by a few excellent factors," while the minus or "-" means the relative standing within the rating category.
"The Philippine economy will likely see stable growth and continuous improvement in the level of national income against the backdrop of active public and private sector investments, development of domestic business sectors such as business process outsourcing, and favorable demographics among other elements," it said.
According to Velasquez, even investors are noticing the economy's upward trend despite the political issues, which he said are considered a separate matter by stakeholders.
"You can compare it with Thailand. Thailand had political issues and their economy weakened. In the case of the Philippines, that is not happening," he said.
The Department of Budget and Management (DBM) said government spending amounted to P5.336 trillion in 2023, outpacing the previous year's expenditures. This year's budget authorizes a spending program of P5.767 billion for 2024.
**Lifting 8 million out of poverty**
In the same forum, Velasquez also expressed optimism that the government would achieve its target of lifting eight million Filipinos out of poverty by 2028.
"So, actually, we will increase the number of poor that will be lifted from poverty - we need eight million to be lifted from poverty by 2028. That is doable," she said.
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