Inflation exacerbated by government indifference to controversial maritime issue

Former Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said the next government must strengthen the Philippines’ commitment to its ability to produce the country’s goods and services in order to cope with rising inflation. (Photo: Getty Images)

A monetary expert said the government’s choice to remain indifferent to China’s illegal incursion into the Western Philippine Sea (WPS) may have exacerbated the supply-driven inflation the country is experiencing.

“Based on the reports, we see that this translates into a shortage of fish. The Western Philippine Sea is one of the major sources of fish supply to the markets,” former Deputy Governor Diwa said. Guinigundo in an interview with Yahoo Philippines.

Contrary to what the president always says the WPS doesn’t have a lot of fish, it accounts for 30 percent of the country’s caught peaches, making it one of our main sources of seafood.

Due to the shortage of foodstuffs and other basic products in the market, the government had to liberalize exports and issue certificates of need to import to ensure “that we can import the products that can be in shortage so that we can ease inflationary pressures”. to build.”

And so, for Guinigundo, the next government must strengthen its commitment to our ability to produce our own goods and services in order to cope with rising inflation.

“It is important that our manufacturing and our agriculture is robust and resilient to produce the commodities we need, that we are not in short supply,” he said.

Guinigundo also said the next administration must support micro, small and medium-sized enterprises, which represent more than 97-98% of our economy, in order to level prices in the market.

He also highlighted the need for a competitive market so that we can obtain quality goods and services while keeping prices low and affordable for the general public.

“[I]In this type of competitive environment, you only see the best. You see the best in the industry, you see the best in people producing more and producing efficiently. This will have a very positive impact on inflation,” Guinigundo said.

Marvin Joseph Ang is a creative news writer who follows developments in politics, democracy and popular culture. He pleads for a free press and a national democracy. The opinions expressed are his own.

Watch more videos on Yahoo:

Comments are closed.