Press Releases

Salceda on PH economy in 2023: “Absolutely no recession;” inflation to settle to “4.0 level” by mid-year

January 24th, 2023

House Ways and Means Chair Joey Sarte Salceda (Albay, 2nd district) seconded President Marcos’s statements in the World Economic Forum that the Philippine growth outlook remains bright despite global recession fears, with the House tax panel chair saying that “absolutely there will be no recession for the Philippines in 2023.”

“We will be in positive growth territory regardless of what happens for the rest of the world. We have removed restrictions on so many key sectors – public services, the retail trade sector, the energy sector – that the country will offset global recessionary forces.”

“Pent up demand will also ensure that our economy, which is at least 70% driven by domestic demand, will have plenty of growth runway.”

“We also have so many promising sectors – mining and electronics among them – that will remain resilient through the pandemic. Semiconductor demand will remain strong and above supply regardless of the global growth average. We saw that during the pandemic, when everybody thought the sky would fall.”

“And, if the world doesn’t go through a recession, there is definitely room to grow beyond the 6.5% project of our economic managers. We can go for 8%.”

Salceda adds that he sees inflation tapering off in 2023.

“We’re getting a better hold of agricultural smuggling issues. I’m confident that Congress’s efforts to expose how artificial onion and meat prices are will help pop the bubble.”

“2023 inflation should hit the 4.0 level by mid-year. And that will boost consumer demand further.”

Salceda said that “therefore, our strategy now must be ‘how do we sell the Philippines as a safe haven for investments when the world feels fearful of putting money everywhere else?”

“Thus, I support the President’s aggressive marketing of the Philippines to crucial audiences such as the World Economic Forum, and through state visits to our most valuable partners and neighbors.”

Salceda adds that apart from liberalized sectors, the President’s marketing of the Philippines through avenues such as the Maharlika Investment Fund will help direct investments towards “agriculture, energy, climate change adaptation, and digitalization.”

“If we will pursue the strategy of being a safe haven, a place where investors can make a return despite global prospects, then we should have avenues to channel those investments. That’s why the Maharlika Investment Fund, among other investment prospects, is crucial.”

“As I said then, I think Vietnam and India will be our biggest competitors for both growth levels and for foreign investments. That’s why we have to be more creative.”

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