The Philippine central bank chief said on Friday president-elect Ferdinand 鈥淏ongbong鈥 R. Marcos, Jr., is better placed than his predecessor to face economic challenges and that he expects structural reforms and infrastructure build-up will continue under the new administration.
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno, speaking at an Asian Development Bank Institute forum, said there are clear indications that key reforms will continue under Mr. Marcos, who takes office next month and will command a supermajority in Congress.
A smooth transition of power, and the newly-elected leader鈥檚 鈥渙verwhelming mandate鈥 should help sustain economic growth and investor confidence, he said.
鈥淭hey have also indicated that they are going to continue what鈥檚 being done by the current administration, which is strong on public infrastructure,鈥 Mr. Diokno said, referring to Mr. Marcos and his political allies that include Vice President-elect Sara Duterte-Carpio, the incumbent leader鈥檚 daughter.
Mr. Diokno also said the next administration will inherit 鈥渁 better state of infrastructure鈥 and a 鈥渕ore robust economy鈥, putting this year鈥檚 growth on track to hit the 7%-9% target.
But like the rest of the world, he said the Philippines faces risks to its growth outlook, such as a deterioration in the coronavirus disease 2019 (COVID-19) situation and a prolonged Russia-Ukraine conflict.
The BSP has taken measures to sustain the growth momentum by addressing rising inflationary pressures, with a 25 basis points increase in interest rates effective Friday, its first hike since 2018.
Mr. Diokno said the BSP鈥檚 policy tightening cycle has begun, adding that its 鈥渆xit strategy鈥 after undertaking 鈥渆xtraordinary鈥 measures to support the pandemic-hit economy will be rolled out in a gradual manner.
The BSP鈥檚 policy actions will be 鈥渨ell-communicated鈥 and guided by the inflation and growth outlook over the medium term as well as the public health situation, he said. 鈥 Reuters
