Reform, govt intervention seen key to reaching goal
THE Philippines has the potential to become a $2 trillion economy by 2050 in a transformation engineered by strategic government intervention and reform, the secretary for the Department of Economy, Planning and Development (DEPDev) said.
DEPDev in a statement on Wednesday said Secretary Arsenio Balisacan at an economic forum in Milan, Italy, underscored how the country sustained its strong economic momentum through the years, and shared the government’s growth plan for the economy in the coming years.
“At our current growth trajectory, and barring significant external shocks, we anticipate reaching a $2 trillion economy by 2050,” Balisacan said during the Philippine Economic Dialogue in Milan, Italy on May 6, as disclosed by DEPDev in its May 7 statement.
The Philippine Economic Dialogue, conducted on the sidelines of the 58th Annual Meeting of the Board of Governors of the Asian Development Bank (ADB), was attended by about 90 participants from the European business and financial communities, as well as delegates from the ADB Annual Meeting.
PH market features
Balisacan shared the economy’s desirable market features, citing its $392 billion economic output, its progress as a rising middle-income country and its sizable population of 114 billion with a median age of 27.
The government is pushing for private-sector-driven growth by actively shaping an open, future-ready economy where investments generate lasting impact and shared prosperity, Balisacan told the dialogue participants.
In this regard, the DEPDev secretary cited improvements in the governance framework for public-private partnership (PPP) projects, which enhanced transparency and investor confidence.
Key policy progress
Key policy advancements include the Philippines-Korea Free Trade Agreement, the Ease of Paying Taxes Act, the CREATE MORE Act and the establishment of green lanes for strategic investments, along with measures to facilitate infrastructure development and reduce the cost of doing business.
He invited investors to explore opportunities within the Luzon Economic Corridor, a key government initiative aimed at boosting trade and investment across the region.
“The Luzon Economic Corridor connects Subic, Clark, Manila and Batangas through coordinated investments in logistics, energy, and infrastructure,” Balisacan said.
“This corridor supports key sectors, such as agribusiness, semiconductors, manufacturing, and finance—serving as a launchpad into Asian and global markets,” he said.
The country’s chief economist also highlighted the government’s commitment to infrastructure development, with 207 flagship projects worth about $178 billion currently in various stages of implementation.
Private sector role
He underscored the private sector’s vital role in addressing the country’s infrastructure needs and reaffirmed the administration’s strong commitment to developing a workforce that meets evolving labor market demands.
“Strong macroeconomic fundamentals, reform momentum, a skilled and young workforce and a strategic location position the Philippines as your ideal partner of choice in Asia and globally. The right time is now. The right place is the Philippines,” he said.
During the panel discussion, DEPDev said Budget and Management Secretary Amenah Pangandaman emphasized the government’s sustained investments in human capital, highlighting the strong, sustained focus on education, health and social protection that complement the upgrade of the country’s vital infrastructure through the Build-Better-More program.
She also discussed game-changing procurement reforms under the New Government Procurement Act, which enables enhanced opportunities and alternatives for private-sector participation in providing public goods and services.
Finance Undersecretary Domini Velasquez detailed government efforts to strengthen the economy’s fiscal foundations, citing debt-to-gross domestic product (GDP) and deficit-to-GDP ratios at manageable levels and public-private partnerships that provide critical financing for transformative infrastructure projects.
Meanwhile, Bangko Sentral ng Pilipinas (BSP) Assistant Governor Zeno Abenoja highlighted how the Philippine government was able to manage inflation, providing ample room for an accommodative monetary policy that will support sustained consumption and investment activities in the coming years.
