THE MALAYA BUSINESS NEWS TEAM
The Philippines has emerged as a leading economic performer in Asia after rebounding from the impact of the Covid-19 pandemic, finding a new growth path as shifting geo-economic landscapes redefine how nations move forward, the country’s chief economic planner said, citing the latest World Bank report launched July 15.
The World Bank report on the Philippines, titled “Running Uphill: Growth, Jobs, and the Quest for Productivity,” is the first in a new generation of reports that place employment at the center of growth strategy.
No accidental gains
Philippine Economic Planning Secretary Arsenio Balisacan said at the official launch of the report the gains mentioned by the World Bank were not accidental, but a result of hard-won reforms.
The study traces 15 years of data on productivity and job creation, identifying key reform levers to lift gross domestic product (GDP) growth to 7 percent annually and generate millions of better-quality jobs.
It said poverty incidence dropped to 15.5 percent in 2023 from 18.1 percent in 2021, while the jobless rate improved to 4.3 percent — better than the government’s own targets.
“These gains are not accidental,” Balisacan said, crediting hard-won reforms.
Balisacan also repeated a warning from the report against complacency, saying the country must go “beyond business as usual” to sustain inclusive growth by raising productivity, enabling innovation, and expanding access to opportunities.
“Every peso spent must deliver tangible benefits to the Filipino people,” he said, calling for sustained policy focus and smart investments in education, health, food security, and digital and regional connectivity.
From growing ‘fast’ to ‘faster’
World Bank lead economist Gonzalo Varela said that while the Philippines has achieved faster growth in recent years — doubling its GDP in just over 13 years — the country must now shift from “growing fast” to “growing faster for longer” if it is to reach its ambition of becoming a middle-class society by 2040.
“The Philippine economy has been flying fast but on just one engine — investment. To move to a higher growth path, it must now fully tap its productivity and human capital engines,” Varela said, warning that without bold reforms, the country’s long-term trajectory could fall short of high-income standards.
Varela noted that much of the country’s job creation since 2010 has been concentrated in inward-looking, non-tradable sectors, with the number of exporting firms in manufacturing actually declining over the past decade.
“The challenge now is to pivot from an inward-looking growth model to one that competes regionally and globally,” he said.
He emphasized that removing market barriers, strengthening competition, and integrating more deeply with global value chains will allow firms to scale up and innovate, which are essential to delivering quality jobs.
“The story of the Philippines is one of progress,” Varela said. “But to make the transition to a high-income economy, we need to move from potential to performance.” – Ruelle Castro
