According to the Department of Economy, Planning, and Development (DEPDev), the Philippines will need to go beyond consumption and services and broaden the country’s economic drivers by making more investments, encouraging innovation, and upgrading infrastructure to improve productivity and achieve its growth potential.
DEPDev Secretary Arsenio Balisacan said that requires attracting more investments, generating higher quality and better paying jobs – particularly in manufacturing and higher value-added services, and expanding into new markets. He said it is equally important to raise the productivity of the country’s economic sectors through the adoption of modern, value-creating, innovative technologies.
In addition, future proofing the economy through transformative and forward-looking policy reforms will be needed amid disruptions caused by megatrends reshaping the economic landscape, including heightened uncertainty, the rapid evolution of artificial intelligence, and intensifying climate risks.
Balisacan also noted the demographic shifts, as the country’s fertility rates are declining, working-age population growing, and dependency rates falling, which could favor a balance for economic growth with greater savings or investments from the working population. At the same time, the country is also beginning to see an increase in the proportion of older adults.
“This dual trend means that we must work fast so that we do not miss this window of opportunity. To fully harness this demographic dividend and boost annual economic growth for the next few decades, sustained investments in education, healthcare, social protection, and supporting infrastructure are crucial,” he said, adding that these investments would ensure the country a healthy and productive workforce that will drive long term growth and inclusive development.
Long term growth and inclusive development are goals that neither come easily or cheaply, and therefore require the necessary investments in terms of resources, effort, and determination. And since whatever is planted now will take years, if not decades before it bears fruit, our country will need a roadmap that is immune to the changing and shortsighted whims and priorities of politicians.*
