Finance chief cites strong PH growth amid global risks

The Philippine economy remains one of the fastest-growing in Asia despite ongoing global challenges, a top finance official said Tuesday.

Finance Secretary Ralph Recto, speaking at the post-State of the Nation Address (SONA) conference in San Juan City, said the economy has expanded by an average of 5.9 percent since 2022. He noted that consistent 6 to 7 percent annual growth over the next decade could double the size of the economy.

"Kung titingnan natin, we are one of the fastest growing economies. We're able to create jobs, and if we can grow by 6 to 7 percent annually for the next 10 years, that will double the size of the Philippine economy," Recto said.

He acknowledged external pressures such as the Russia-Ukraine conflict, geopolitical tensions in the Middle East, and global trade uncertainties, but maintained the country remains resilient. The global economy is expected to grow by around 3 percent this year, while the Philippines is targeting growth above 6 percent, he said.

The official projected the national economy could reach PHP37 trillion by 2028.

Recto also highlighted macroeconomic improvements, including a drop in the inflation rate to 1.4 percent as of June and a record-high labor force of 52.33 million Filipinos as of May 2025. Of this figure, wage and salary workers totaled 31.6 million.

“Ibig sabihin, mas dekalidad na iyong trabaho dito ngayon sa Pilipinas kumpara sa nakaraang administrasyon (This means that the quality of jobs in the Philippines has improved compared to the past administration),” Recto said.

In a separate media interview, Recto addressed concerns about the 19 percent reciprocal tariff imposed on Philippine goods by the United States. He said the overall trade arrangement remains favorable for the country.

“We have one of the lowest tariffs in the world if you take a look, so beneficial sa atin 'yun. Siyempre tatamaan din iyong exports natin initially, but as a whole, it looks like we have a better deal than many other countries,” he said.

He added that reduced tariffs on select US pharmaceutical products and wheat could help lower the prices of medicines and bread in the local market. Not all US imports will benefit from lower tariffs, he clarified, noting that the adjustments target goods that do not compete directly with local industries and benefit consumers.