The Philippine economy is well-positioned to weather the adverse impact of the coronavirus pandemic, a bank official said.
Security Bank President and CEO Sanjiv Vohra asserted this during an online forum last week, saying he believes the Philippine economy is being supported by “improved revenue flows, tax reforms and wise spending.”
“The country’s fiscal and economic strength borne out of improved revenue flows, tax reforms, debt management and wise spending and investing, have served us well,” Vohra said.
Security Bank Chairman Alberto S. Villarosa, meanwhile, emphasized that having the knowledge of the current situation is necessary to overcome this pandemic.
“We are certainly facing something we have not faced before, at least not in our lifetime,” Villarosa said. “This is something totally new and unknown.”
Finance Secretary Carlos G. Dominguez, who was the key speaker of the online forum, said that recovery plans should consider both public safety and the economy to facilitate continued growth. Dominguez is projecting gross domestic product (GDP) growth to reach 6.5 percent to 7.5 percent next year. In the first half, the Philippines’ GDP contracted by 9 percent as the country was hit by economic slump after lockdown measures stalled business activities.
“Even as we navigate through ongoing circumstances, we intend to maintain fiscal discipline, make our financial sector more inclusive and introduce more reforms that will help us consolidate and progress this environment,” the Finance Secretary said.
Dominguez also outlined the legislative measures to push the economy toward recovery, including the Corporate Recovery and Tax Incentives for Enterprises (Create) bill. According to the chief of the Department of Finance, the proposed Create bill “is not industry-specific.”
“It is to reduce the tax rate for all companies, not only big foreign companies,” Dominguez said.