Manila: Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan emphasized the urgent need for the Philippines to diversify its growth drivers beyond consumption and services to achieve sustainable and inclusive economic progress. Speaking at the Economic Journalists Association of the Philippines (EJAP) Economic Forum held at the Bangko Sentral ng Pilipinas (BSP) in Manila, Balisacan highlighted the importance of expanding growth sources to include investment and exports on the demand side, and industry and agriculture on the supply side.
According to Philippines News Agency, the Philippine economy recorded a 2.3 percent growth in the second quarter of the year, a slowdown compared to the 2.8 percent expansion in the first quarter. Despite this deceleration, Balisacan remains optimistic, forecasting a recovery in the coming quarters. He noted that the Philippines has shed its historical image as an economic laggard and is now among the fast-growing nations in Southeast Asia. The recent economic challenges, he argued, do not erase this progress, and the narrative of growth is expected to persist.
Balisacan underscored the potential for industrialization to serve as a key pillar of economic growth, advocating for a revitalization of the industry and agriculture sectors. He also pointed out the country's achievements in innovation, which he sees as crucial for long-term productivity and GDP growth. Moreover, Balisacan stressed the importance of upskilling the labor force, particularly in emerging technologies and artificial intelligence (AI), to sustain growth. Contrary to fears that AI might negatively impact the Information Technology and Business Process Management (IT BPM) sector, he noted that the sector continues to grow despite technological advancements.
Balisacan emphasized that the economy must not only accelerate but also become resilient to external shocks. To achieve inclusive growth, he highlighted the need for robust social protection measures, food security, and improved access to education and health services.
In the remaining two years of the Marcos Jr. administration, the government aims for a 5 to 6 percent economic growth rate, keeping inflation within 4 to 5 percent in 2027 and 2 to 4 percent in 2028, and reducing poverty to less than 10 percent. Balisacan asserted that the focus will be on accelerating the implementation of strategic programs and projects, maintaining inflation control, investing in human capital, and enhancing productivity through innovation.
