The economy persevered… despite the global headwinds and costly US tariffs.
The business community, for a while, became fidgety over the courtesy resignations of members of the economic team.
The Philippine economy is doing relatively well. Many businessmen and economists were, thus, perplexed why President Ferdinand Marcos Jr. was rocking the boat.
His economic team, Finance Secretary Ralph Recto in particular, has managed well in controlling inflation, posting respectable gross domestic product (GDP) figures and attracting foreign investments.
The economy persevered and expanded despite the global headwinds and costly US tariffs. The inflation rate has considerably cooled.
Major business groups, too, had expressed satisfaction with the administration’s economic team amid President Marcos’ call for his Cabinet’s courtesy resignations.’
Philippine Chamber of Commerce and Industry (PCCI) president Enunina Mangio expressed surprise at the sweeping call for resignations. She stressed the need to avoid uncertainty and ensure economic continuity by making new and reappointments promptly. The Makati Business Club (MBC) has likewise backed the economic cluster.
The disappointing results of the mid-terms elections clearly peeved President Marcos, who was candid enough to acknowledge the public’s dissatisfaction.
Senate President Francis Escudero thought President Marcos displayed sensitivity to the sentiments of the Filipinos.
But the political arena, and not the economic front, is the one that is troubling the administration.
Fortunately, President Marcos briefly ended the suspense by reappointing all members of his economic team, including Recto.
The President’s decision to spare Recto from his sweeping “bold reset” just 24 hours after announcing it speaks volumes. It was, unmistakably, a vote of confidence and a recognition of Recto’s exemplary leadership at the DOF.
Some critics say the President’s decision to retain Recto and the rest of the economic team proves the shake-up was all for show. I disagree. To me, it shows that in the midst of change, the President knew exactly what not to change. And the numbers back him up.
As Finance chief, Recto led the DOF to its highest revenue effort in 27 years. Total revenue collections in 2024 reached P4.419 trillion, topping the target of P4.270 trillion. The figure is equivalent to 16.72 percent of the GDP, the highest revenue effort since 1997.
Revenue collections in 2024 surpassed the previous year’s total by 15.56 percent (or P594.9 billion), and beat the revised full-year program by 3.49 percent (or P149.1 billion).
Under Recto’s watch as the Marcos administration’s chief economic manager, the Philippines has remained as one of the world’s fastest-growing large economies amid persistent global and domestic headwinds.
Inflation slowed down significantly from 5.8 percent in 2022 to 3.2 percent in 2024 and to just 1.4 percent as of April this year―thanks to a whole-of-government effort to keep prices in check.
The full-year average unemployment rate in 2024 fell to the lowest level of 3.8 percent since the Philippine Statistics Authority (PSA) started compiling comparable data in 2005. Quality jobs for Filipinos are also on the rise.
Last year’s annual average unemployment rate was well below the full-year target range of 4.4 percent to 4.7 percent set under the Philippine Development Plan 2023-2028. This also surpassed the 4.0 percent to 5.0 percent target set for 2028.
It was no surprise that business groups and analysts quickly flagged the potential removal of Recto and his team as “disruptive.” They had warned that such a move could rattle investors, derail ongoing reforms and programs and inject fresh uncertainty into an already complex economic landscape.
The DOF chief is arguably one of the most demanding posts in government. Replacing its leadership midstream would mean setting back recent hard-won gains in revenue generation, inflation management and job generation, among many other aspects. His successor would surely fumble in the dark just to get up to speed.
Recto, who readily complied with the courtesy resignation order, just as swiftly expressed his thanks upon being retained, pledging to work even harder and refine their strategies at the DOF to accelerate delivery and deepen impact.
President Marcos’ decision is a great reminder that sound leadership isn’t just about making bold moves. It’s also about protecting the gains of the administration.
E-mail: rayenano@yahoo.com or extrastory2000@gmail.com
Tags:
Finance Secretary Ralph Recto, Department of Finance, Cabinet revamp, inflation, unemployment rate
