President Ferdinand Marcos Jr. described the Philippine economy as more than steady in remarks to reporters reported on September 15, delivered while he was in New Delhi. He acknowledged a set of headwinds facing the country, including a weaker peso and higher prices, while arguing that the underlying position remained sound and would improve in the months ahead.
The figures behind the assessment showed pressure on several fronts. Unemployment rose to 6 percent in July, up from 4.9 percent in June. Inflation stood at 6.1 percent in August and averaged 5.2 percent for the year to date, above the government’s 3 percent annual target. National debt had climbed to 19.39 trillion pesos by late July, and the peso had weakened against the dollar, though food price increases had moderated from earlier levels.
Marcos attributed part of the weakness to reduced government spending following the flood control corruption scandal, which has slowed the release of public funds. He linked the softer job market to that pullback, saying unemployment had risen because of a lack of public spending. He also cited high petroleum costs and tensions in the Middle East as external factors weighing on prices, framing several of the pressures as coming from beyond the country’s borders.
On the government’s response, the president pointed to support programs including farm subsidies, scholarships and an assistance initiative known as UPLIFT. He said conditions should improve as government spending expands and employment opportunities grow, while declining to make firm commitments on when inflation would return to target. The administration has held to a 3 percent annual inflation goal that price growth has run past for much of the year.
The remarks set the administration’s confidence against economic data that pointed to strain for many households. Supporters of the government’s view note that growth has held up through a difficult year, while the figures on inflation, jobs and debt underline the scale of the challenge. The pace of public spending, held back by the corruption inquiry, is likely to shape how quickly the picture changes, along with the course of prices for food and fuel in the closing months of the year.
