Government vows to sustain high economic growth

While the Philippines recorded significant progress in 2024, the government should remain vigilant and proactive in addressing various socioeconomic priorities to achieve lasting social and economic transformation, according to the National Economic and Development Authority (NEDA).

During the presentation of the 2024 Philippine Development Report (PDR 2024) at the NEDA Board, chaired by President Ferdinand R. Marcos Jr., on Thursday, the government pledged to sustain high economic growth, maintain low and stable inflation, strengthen fiscal foundations, and continue its efforts to reduce poverty to single-digit levels, as outlined in the Philippine Development Plan (PDP) 2023-2028.

Two years into the implementation of the PDP 2023-2028, the PDR 2024 provides a comprehensive overview of the government’s progress in executing the president’s eight-point socioeconomic agenda. The agenda prioritizes protecting families’ purchasing power; reducing vulnerability from economic and natural disasters and mitigating scarring from the COVID-19 pandemic; ensuring sound macroeconomic fundamentals; creating more, higher-quality, and green or resilient jobs; ensuring a level playing field; and upholding public order and safety.

“Last year, despite external and domestic challenges, the Philippine economy remained on a positive and robust growth trajectory. We have achieved many of our targets and delivered tangible results,” said NEDA Secretary Arsenio M. Balisacan.

The Philippine economy grew by an average of 5.8% in the first three quarters of 2024, with all sectors having returned to their pre-pandemic levels on the expenditures side. On the supply side, production in the mining and quarrying and real estate sectors is expected to recover further in 2025.  

Inflation averaged 3.2% in 2024, well within the government’s target band of 2.0% to 4.0%. Food inflation also slowed to 4.5% in 2024, representing a significant improvement from the 8.0% figure recorded in 2023.

“While inflation has moderated, prices of some key commodities remain elevated. It is very crucial to make sure that food is affordable and accessible by enabling markets to function efficiently, as well as refining our targeting programs for low-income and vulnerable Filipinos,” the country’s chief socioeconomic planner noted.

The labor market showed significant gains, with the unemployment rate averaging 4.3% in 2024, surpassing the government’s target range of 4.4% to 4.7%. The share of wage and salaried workers in private establishments also rose to 50.7% in 2024 from 49.9% in 2023. This improvement in job quality was consistent with the downward trend observed in the country’s underemployment rate, which declined to 13.3% in 2024 from 13.6% in 2023.

Poverty among Filipinos dropped to 15.5% in 2023 from 18.1% in 2021, which translates into approximately 2.4 million Filipinos lifted above the poverty line.  

“With the robust labor market performance and inflation deceleration in 2024, we expect to see further poverty reduction when the new poverty data becomes available,” Balisacan noted.

He also said that the government will continue to be on the lookout for both external risks and opportunities and will seek to minimize adverse impacts to the economy.

“We will remain vigilant and carefully place important measures to deal with social issues such as increasing adolescent pregnancies as well as shifting workplace preferences to protect and strengthen our labor force moving forward. La Niña and other climate risks continue to compromise food security; geopolitical risks can disrupt supply chains for key commodities and inputs; and the rapid advancement of AI and emerging technologies poses risks to many sectors. In anticipation of and in response to these existing trends and developments on the horizon, we must learn our lessons and recalibrate our strategies accordingly. Our resolve to achieve our targets this year is stronger than ever,” Balisacan said.

For 2025, the government aims to reduce poverty incidence to 13.2% or lower. The high growth trajectory of 6.0% to 8.0% will continue to be pursued, and proactive measures will keep headline and food inflation low and stable (2.0% to 4.0%). The generation of high-quality jobs will be prioritized to maintain an unemployment rate below 5.1%, as well as increase the proportion of wage and salaried workers.  

“To achieve these targets, we will continue to drive socioeconomic transformation by diversifying and developing new growth drivers, enabling the adoption of new technologies, raising economic productivity, and establishing meaningful collaboration with various stakeholders,” Balisacan added.

With the budget adjustments for 2025 following President Marcos’ veto of several line items in the 2025 General Appropriations Act, the Marcos administration assures the public that critical health, education, and infrastructure projects and initiatives will continue to be well-funded and supported for rollout this year.

“The president’s marching order is clear: the government will continue to support the country’s most urgent development priorities, ensuring that public services are not only sustained but further enhanced to support economic growth and inclusion,” the NEDA chief affirmed.