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PH to benefit from ‘more stable’ global economy under Biden

THE Philippines is apt to benefit from a more stable world economy and subdued geopolitical tensions after United States President Joseph R. Biden, Jr. took office on Wednesday.

In his inauguration speech, Biden offered a message of reconciliation, as the United States looks to restore alliances around the world.

“America has been tested, and we’ve come out stronger for it. We will repair our alliances and engage with the world once again. Not to meet yesterday’s challenges, but today’s and tomorrow’s challenges. And we will lead, not merely by the example of our power, but by the power of our example,” Biden said

Finance Secretary Carlos G. Dominguez III highlighted this passage from the US president’s speech, saying this “bodes well for a return openness to international trade and investment and will undoubtedly redound to our mutual benefit.”

Former President Donald J. Trump had pushed his “America First” policy and provoked a trade war with China. Under his administration, the United States withdrew from the Paris Agreement and the World Health Organization (WHO).

“Adherence to multilateral agreements like the WTO (World Trade Organization), climate agreement and WHO, to mention a few, will make the world economy less risky, less volatile and more stable plus additional stimulus spending by the Biden administration will help boost global recovery. The Philippines will benefit from all these,” Finance Undersecretary and Chief Economist Gil S. Betran said.

Biden issued an executive order on Wednesday bringing the United States back into the Paris accord.

Meanwhile, the Biden administration is pushing for a $1.9-trillion stimulus package to drive economic recovery.

The planned big spending by the US government will help the global economy recover faster, which will benefit the Philippines through trade and other channels, said Michael L. Ricafort, the chief economist at the Rizal Commercial Banking Corp. (RCBC) in a note on Thursday.