President Ferdinand Marcos Jr. expressed confidence that a surge in incoming investments will easily offset any decline in foreign grants resulting from the Philippines’ transition to an upper-middle-income economy.
While climbing the economic ladder means the nation will gradually lose access to financial aid reserved for poorer countries, Marcos views the shift as a positive evolution rather than a setback.
Speaking at a joint press conference following a bilateral meeting with Prime Minister Mark Carney in Vancouver, Canada, the President acknowledged the shifting landscape.
”Now, that changes the rules a little bit for us, because we have to become less dependent on just straight-out foreign grants, for example,” Marcos said during a joint press conference following a bilateral meeting with Prime Minister Mark Carney in Vancouver, Canada, on Friday, July 3.
”I do not worry. We were discussing this earlier today. And I don’t think that it will lead to an increase in interest rates for loans, for example,” he added.
”But we do believe the effect will be on the grants that are given. But nonetheless, that means, in a way, that can be interpreted as the World Bank saying, you no longer need that, and we will replace that with investment. And that, I think, is a very, very important development for the Philippines and its economy,” he further said.
Marcos noted that while the country “still have ways to go,” the World Bank’s recognition stems from his administration’s successful efforts to pinpoint and modernize crucial sectors. He maintained that the upgraded status serves as “a heightening of our confidence in our economy.”
”And I think that comes from the fact that the Philippines has, in the last four years, worked very, very hard to make the Philippines a more investment-friendly destination for both locals and for our friends around the world,” he said.
A major driver of this growth, according to the President, is treating the private sector as a “full partner in national development.”
”And that has led us to the FTA now that we are talking about with Canada, and to the other 20-plus FTAs that we have been able to come to and sign again in the last four years,” Marcos said.
”If you remember that we have been a low, yes, we were still in the lower strata of the middle-income economy since 1987. And it is just as well that it is about time that we moved up on that strata. We have changed that category somewhat,” he added.
Prime Minister Carney agreed that the upgrade is “a positive sign” that goes beyond a single good quarter, pointing instead to broader progress built over recent years.
”Is something more broad and development that’s been built over the course of the recent years. And if I may suggest as well, also the recognition of the importance of the private sector as a partner in overall development,” Carney said during the press conference.
“And if I may suggest as well, it is also the recognition of the importance of the private sector as a partner in overall development,” the Canadian leader said.
Carney concluded by emphasizing that transparency, human rights, and the rule of law remain vital components of sustainable economic growth.
“That’s part of the positive aspect. Agreements such as we’re moving forward on today, including the prospect of a free trade agreement, are reinforcing all those factors,” Carney said.