The Philippine government expects a strong full-year gross domestic product (GDP) growth for 2022, most likely much faster than its growth target of 6.5 to 7.5 percent, Finance Secretary Benjamin Diokno said on Monday.

The Philippines grew 7.6 percent in the third quarter.

In a speech during a luncheon hosted for President Ferdinand Marcos Jr. and Philippine chief executive officers (CEOs) in Davos, Switzerland, Diokno said because of the expected slowdown of the global economy, the Philippine economy is forecasted to grow by around 6.5 percent this year.

“And that’s still one of the highest if not the highest growth projection in the Asia-Pacific Region,” Diokno said.

The Philippines’ bustling manufacturing sector, record-low unemployment, and stable and resilient banking system can alleviate buffers against external headwinds, all indicating a resilient economy, the finance chief said.

Further, opening economic sectors to foreign equity, improving the ease of doing business and allowing for modern transformative industries to take root and grow will further sustain the economy.

Diokno said the Marcos government has created a more competitive and enabling environment through public-private partnership (PPP) to further expand the Build, Better, More infrastructure agenda of the administration.

This will further boost investments on top of the government’s goal to spend at least 5-6 percent of GDP on infrastructure, Diokno noted, stressing all these form the backbone for the rapid and sustained growth for the Philippines.

But because of the current challenges, Diokno said the Philippines is taking the first steps toward launching the Maharlika Investment Fund, the country’s first ever sovereign wealth fund that will support the goals set by the administration in the Philippine Development Plan 2023-2028.

“The fund, which will be established in keeping with the highest standards of accountability and sound fiscal management, aims to diversify the country’s financial portfolio,” the DOF chief said, adding, he looks forward to discussing the fund during the World Economic Forum (WEF) in Davos.

“May the next few days bring forth more intensive collaboration and cooperation towards genuine economic transformation," the DOF secretary said.Presidential News Desk