Marcos gives cautious economic outlook on El Niño, geopolitical risks

The skyline of a business district is seen from a commercial building in Ortigas, Pasig city, metro Manila Feb 29, 2016. REUTERS/Romeo Ranoco/File photo

MANILA, Philippines — President Ferdinand Marcos Jr. on Friday warned of dark clouds on the horizon that could dampen the Philippines’ economic growth.

During the introduction of newly sworn in Finance Secretary Ralph Recto and Presidential Adviser on Investment and Economic Affair Frederick Go, Marcos said the Philippines is moving past the damage of the pandemic.

“While the future looks bright, dark clouds still gather on the horizon, unleashing headwinds that will temper, maybe even damage or trample our optimistic outlook,” said Marcos.

Marcos said there were escalating geopolitical tensions overseas that could dampen global trade, tighten global financing and trigger food and fuel shocks that could push inflation up.

The President said, “We are watching it very, very closely.”

“Here at home, there is a distinct possibility of the beginnings of El Niño,” said Marcos.

According to Marcos, the government will have to cushion the impact with timely interventions so that food prices will not surge.

“The challenge before all of us, then, is not just to grow the economy but to make sure that such growth is felt by people of all parts of society,” said Marcos.

Marcos wanted growth to be felt not just in terms of increased family incomes but also in the improvement of infrastructure, healthcare, and education systems.

On Recto’s appointment, Marcos said the new finance secretary “has a true understanding of how the Philippine economy works.”

He replaced Benjamin Diokno, who served as Bangko Sentral ng Pilipinas governor before becoming DOF chief in 2022. Diokno is returning to the BSP as Monetary Board member. —with a report from Reuters