June 19, 2024

The Insider News

Direct from the source

Economist confident over 2023 economic growth

The Philippine economy will continue to grow through the rest of the year with aggressive efforts of the Marcos government to usher the country toward post-pandemic recovery, an economist said on Monday.

During the Laging Handa public briefing on the People’s Television (PTV), Dr. Michael Batu, an economist, said the Philippines’ macro-economic fundamentals will remain strong as evidenced by the continued growth of the economy.

According to Batu, the country’s gross domestic product (GDP) and gross national product (GNP) by extension will continue to grow with the inflation rate also dipping.

“At nakikita ko rin na ang inflation is may evidence po na ang inflation po eh pababa na. Pero hindi po ako nagsasabi na 100 percent ay bababa ito ngayong Enero, pero may mga indicators na baka ngayong Enero, bababa na ito,” Batu said as he noted that some economists see the inflation is already at its peak and is expected to drop this month.

Batu is predicting the economy to grow further because of the reopening of other sectors of the Philippine economy that haven’t reopened yet as the country slowly emerges from the pandemic.

There are pockets of the local economy that aren’t 100 percent open, Batu said, noting the reopening in the coming months will push the Philippine economy to grow further.

“So makikita pa rin natin na makakatulong iyan, iyong pagrere-open na iyan noong mga pockets na iyan sa mga darating na buwan. So aasahan natin na iyong growth ay tataas pa rin,” said Batu.

In terms of exchange rate, Batu said he sees evidence of improvement in foreign exchange, with the Philippine peso gaining strength over the US dollar.

And in terms of petroleum prices, there is a slight downward movement in prices although fuel prices remain high, Batu said.

“Mayroon din akong nakikitang movement na although, mataas pa rin ang presyo ng langis kumpara noong nakaraang taon. Mayroon pa rin akong nakikitang movement na pababa na ito,” the professor and economist pointed out.

Batu also hopes President Marcos’ foreign trips could result to actual investments, which will be helpful to the economy this year.

If the pledges become actual investments, those could result in jobs being created that in the end benefit the entire economy, Batu pointed out.

“Kasi ang investments makakatulong iyan sa paglikha ng trabaho, makakatulong iyan sa paglago ng ating ekonomiya,” he said.

“So, iyan iyong mga nakikita natin, in terms of macro-economic fundamentals, it will remain strong at nakikita ko na dahil maganda ang pagpapatakbo ng ating ekonomiya, aasahan natin na tuluy-tuloy pa ring lalago ito sa taong 2023,” Batu added.

Dr. Batu is a Filipino-Canadian economist, specializing in applied econometrics, applied macroeconomics, development economics and the scholarship of teaching and learning economics.

Professor Batu completed Bachelor of Arts in Economics with Computer Applications with Academic Distinction from San Beda College in Manila and was one of the first two graduates of Master in Applied Economics at De La Salle University Manila.

Currently, he is a tenure-track Assistant Professor of Economics at the University of the Fraser Valley in Abbotsford, British Columbia, Canada.