Thank you. Thank you very much.
Allow me to greet Vice President Sara Zimmerman Duterte; the former Presidents – our former Presidents, President Joseph Ejercito Estrada and President Gloria Macapagal-Arroyo; Senate President Juan Miguel Zubiri and the Honorable Members of the Senate; House Speaker Ferdinand Martin Romualdez and the Honorable Members of the House of Representatives; Chief Justice Alexander Gesmundo and the Honorable Justices of the Supreme Court; His Excellency, Most Reverend Charles John Brown and the esteemed members of the Diplomatic Corps; Executive Secretary Lucas Bersamin and the members of the Cabinet; First Lady Louise Araneta-Marcos [applause]; former First Lady, First Lady Imelda Romualdez Marcos [applause]; other distinguished guests; mga minamahal kong kababayan; ladies and gentlemen, magandang hapon po sa inyong lahat.
One year ago today, I stood here before you, setting forth the plans that we have to improve our economy, bring jobs to our people, improve the ease of doing business, recalibrate our educational system to adapt to the new economy, lower and rationalize energy costs, boost agricultural production, enhance healthcare, and continue social programs for the poor and the vulnerable.
Let me now report to the people on the successes that we can now lay claim to, and also the challenges that we continue to face.
Last year, we emphasized certain strong headwinds that were confronting us along with the rest of the world in our post-pandemic economic recovery.
And the biggest problem that we encountered was inflation.
Maraming kaganapan sa mundo ang nakapagpagulo sa maayos na takbo ng pandaigdigang merkado. Bukod sa digmaan sa Ukraine, naroon ang patuloy na epekto ng pandemya. Pinalala pa ito ng pagbabawas ng produksyon ng mga bansang pinagkukuhanan natin ng langis. Nang tumaas ang presyo nito, nagsunuran na rin ang presyo ng iba’t ibang bilihin— ang gasolina, ang kuryente, at ang pagkain.
Ramdam sa buong daigdig, pati na sa Pilipinas, ang naging pagtaas ng mga presyo ng bilihin noong mga nakalipas na buwan.
Sinuri nating mabuti ang sitwasyon. Sa tulong ng ating mga ekonomista, nakapagbalangkas tayo ng mga polisiya na magsisilbing pundasyon ng ating ekonomiya sa mga susunod na taon. Ito ay nakasaad sa ating Medium-Term Fiscal Framework, na sinuportahan ninyo sa Kongreso.
Kasabay nito ang paglulunsad ng mga istratehiya na magpapalakas sa kakayahan ng ating mga kababayan at mga sektor ng ating ekonomiya.
Nakakita po tayo ng magagandang resulta.
While the global prospects were bleak, our economy posted a 7.6 percent growth in 2022—our highest growth rate in 46 years. [applause] For the first quarter of this year, our growth has registered at 6.4 percent. It remains within our target of 6 to 7 percent for 2023. We are still considered to be among the fastest-growing economies in the Asian region and in the world. [applause] It is a testament to our strong macroeconomic fundamentals.
Our financial system, the nerve center of our economy, remains strong and stable. Banks, the transmission arms of our monetary policy, have strong capital and liquidity positions.
Stimulated by the relaxation of pandemic restrictions, transactions once again have flourished—alongside the booming e-commerce that was undeterred by the pandemic. In 2022, the digital economy contributed 2 trillion pesos, the equivalent of 9.4 percent of our GDP. The economy is revived and rejuvenated, backstopped by a favorable enabling environment and the strong rule of law.
This year, the World Bank projects a 6 percent overall growth rate, well within the range of our target for the year. It is anchored on strong local demand, underpinned by consumer spending, and draws strength from the BPO industry, and of course, the steady flow of remittances, and the continuing jobs recovery.
Inflation rate is moving in the right direction. From 8.7 percent in January, our inflation has continued to ease up in all regions, settling now at 5.4 percent for June. What this means is that in spite of all the difficulties, we are transforming the economy. We are stabilizing the prices of all critical commodities.
According to the Bangko Sentral, inflation is expected to ease further by the close of the year, and projected at 2.9 percent by 2024. [applause]
On matters of the economy, there are many things over which we have no control. But over those where we do have control, we are doing everything we can.