Economies in the Indo-Pacific region need deeper integration to share resilience at a time when a global slowdown, if not another recession, is expected, according to Finance Secretary Benjamin Diokno.
The Finance chief said this as the Philippines looks to the mining industry as having “the greatest potential to be a key driver in country’s recovery and long-term growth, along with the industries of semiconductor and electronics, and renewable energy.
Diokno said this in the context of the Indo-Pacific Economic Framework for Prosperity (IPEF) that US President Joe Biden launched in May 2022, during a visit to Japan.
The IPEF is expected to help create a stronger, fairer, more resilient economy for families, workers and businesses in the United States and in the Indo-Pacific region.
US partners that have rallied around the IPEF include the Philippines, Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Singapore, Thailand and Vietnam.
Also, the IPEF will strengthen the country’s ties across this critical region to define the coming decades for technological innovation and the global economy.
The 14 economies of the IPEF alone account for 40 percent of the global gross domestic product and 28 percent of global goods and services trade.
With the Indo-Pacific projected to be the largest contributor to global growth over the next 30 years, Diokno said the Philippines needs to establish strategic cooperation, resilient supply chains and solid digital infrastructure among its partners in the region.
“The Philippines strongly believes that deepening regional integration among our economies is the quickest path to shared prosperity and inclusive growth,” he said.
Diokno said the IPEF will help lower costs by making the Philippines’ supply chains more resilient in the long term, thereby protecting it against costly disruptions that lead to higher prices for consumers.
“Together, we hold the power to shape the trajectory of the global economy in the twenty-first century and usher in a new age of prosperity—one that is characterized by interconnectedness, inclusivity, fairness and sustainability,” he added.
In this light, the Marcos administration is revisiting areas where it can enhance the policy environment and explore new opportunities for high and broad-based growth, which will be aligned with the emerging trends in the global economy.
“The mining industry holds the greatest potential to be a key driver in our recovery and long-term growth, especially now that world metal prices are high,” Diokno said. “In the same vein, we are committed to making the Philippines competitive in the semiconductor and electronics industry.”
He said further that a more liberalized renewable energy sector in the Philippines will create more “green” jobs.