Rising costs challenge PH fiscal gains

While the share of the Philippine government's budget deficit and debt to the economy are going down and "stabilizing," respectively, the ASEAN+3 Macroeconomic Research Office (AMRO) is urging fiscal authorities across the region to remain prudent in spending on public goods and services as a global trade war looms.

- By BEN ARNOLD DE VERA

In its ASEAN+3 Fiscal Policy Report (AFPR) 2025, the regional macroeconomic surveillance organization AMRO said that policymakers in the 10-member Association of Southeast Asian Nations (ASEAN), China, Hong Kong, Japan, and South Korea "need to maintain flexibility to respond swiftly to emerging shocks amid heightened uncertainties, particularly given rising protectionist trends."

"As fiscal positions weakened and fiscal space narrowed, sustained efforts to implement fiscal consolidation and rebuild buffers over the medium term are critical. Policymakers are also encouraged to adopt comprehensive policy packages to address structural challenges and foster sustainable, inclusive growth," AMRO said in a statement on Monday, April 21.

"Fiscal policies should remain agile and flexible to mitigate potential adverse impacts and support economic stability amid escalating trade uncertainties," AMRO deputy director for functional surveillance and research Abdurohman said.

"Preemptively preparing contingency plans, and outlining specific scenarios and corresponding policy actions, will enable swift interventions with well-targeted measures," he added.