NEDA: Inflation, infra delays post risks to Phl
Delays in infrastructure projects and logistics bottleneck, rising inflation, and natural hazards are among the domestic headwinds that will potentially affect the economic growth, according to the National Economic and Development Authority (NEDA).
Aside from these, NEDA cited balancing social protection and labor market flexibility, and peace and security risks.
“We remain vigilant and well-positioned against these downside risks to growth,” NEDA chief and Socioeconomic Planning Secretary Ernesto Pernia said in his presentation during the briefing of the Development Budget Coordination Committee for the proposed 2019 national budget at the House of Representatives.
Among the external risks cited by Pernia are the US-China trade tensions, tightening global financial markets, moderation of global growth in the medium-term, financial sector risks in China, and geopolitical tensions.
To sustain and accelerate growth, the government intends to implement policy reforms, including:
• Improving government processes dealing with business
• Easing restrictions on foreign investments
• Pursuing tax reform towards a simple, fair, and equitable tax system to boost consumption spending and investments
• Ensuring timely execution of the budget
• Seeking out new export market to further diversify destinations
• Lifting quantitative restrictions on rice
• Diversifying high-value crops
• Investing in disaster resiliency
• Ensuring timely restoration of normalcy in affected areas in Mindanao
• Sustaining and enhancing programs that target the vulnerable population
• Strengthening Science and Technology and Innovation Ecosystem to face disruptive technologies
• Implementing a national ID system
“Year 2018 is then expected to be a transition period as the changes are implemented in full by 2019,” Pernia noted. “The spadework for change still needs to be continued all through 2018, thereby pushing back the transition year to 2019,” he said.