Economic managers push reforms for resilient, inclusive growth

The Philippine economy remains on solid footing, but further reforms are needed to ensure that growth is resilient, inclusive, and transformative, an economic manager said Monday.

Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan told participants of the 2025 Economic Journalists Association of the Philippines Economic Forum that while the country’s growth outlook remains positive, it must be supported by deeper structural changes.

“To achieve resilient and transformative progress, we must channel our efforts toward ensuring that growth has diverse pillars across sectors and regions; is driven by productivity; is inclusive and widely shared; and is powered by a workforce equipped for the future,” Balisacan said.

The Philippine economy expanded by 5.5 percent in the second quarter of 2025, bringing first-half gross domestic product growth to 5.4 percent. Balisacan noted, however, that growth remains heavily reliant on household consumption.

“Consumption remains the primary driver. To secure sustained and resilient growth over the long term, we must build up investments and exports as additional, equally strong pillars,” he said.

He pointed out the persistent concentration of economic activity in Mega Manila — comprising Metro Manila, Central Luzon, and Calabarzon — which has consistently accounted for more than half of the country’s GDP since 2000.

“This underscores the need to nurture regional economies as new growth hubs — strengthening their capacity to withstand localized shocks and accelerating the development of lagging regions by connecting them to fast-growing growth poles,” Balisacan added.

He also underscored the need to enhance productivity and prepare the workforce to adapt to rapidly evolving technologies such as artificial intelligence and robotics.

“Our mission is to ensure that growth is diversified, productivity-driven, inclusive, and powered by a future-ready workforce,” Balisacan said. “Staying this course will demand bold reforms, strong investments, and unwavering focus on our ultimate goal: a stable, comfortable, and secure life for all Filipinos.”