A robust middle class is crucial in driving the country’s long-term growth and development, according to the National Economic and Development Authority (NEDA).
NEDA Secretary Arsenio Balisacan, in his keynote address at the 10th Annual Public Policy Conference (APPC) on Sept. 19, 2024 at Makati Shangri-La Hotel, stressed the importance of leveraging global megatrends such as digitalization and climate action to empower the middle class and achieve the nation’s long-term vision.
“The middle class plays a pivotal role as the engine of our nation’s economic growth… Their steady income, investments in education, and consistent consumption of goods and services fuel economic progress and provide opportunities for broader national development,” Balisacan said.
“As the most mobile segment of our society, the middle class is uniquely positioned to participate in decision-making and stay attuned to sociopolitical conditions, leading to greater opportunities for upward mobility… We aim to expand this productive and empowered middle class through the strategies outlined in the Philippine Development Plan [PDP] 2023-2028,” he said.
Discussing the country’s aspiration to achieve upper middle-income country (UMIC) status, Balisacan said that with the right policies and a generally favorable external environment, the Philippines can sustain its upward momentum to reach a gross national income per capita level that places the economy within upper-middle-income country territory by late next year.
“To achieve our long-term vision of a predominately middle-class society, we must have a just transition supported by strong and inclusive governance. We must prioritize the development of our people, align workforce skills with industry needs, and strengthen social protection systems to ensure that no one is left behind,” Balisacan said.
The NEDA chief identified digitalization as a critical global megatrend reshaping industries and generating new avenues for growth, particularly in information technology, business process management and creative sectors.
He said that in 2023, the digital economy contributed 8.4 percent to the country’s gross domestic product and generated over 9.68 million jobs, underscoring its critical role in fostering economic progress.
Climate action was cited as another transformative megatrend. Balisacan noted that green jobs and renewable energy have the potential to drive economic growth and environmental sustainability. He said the Philippines has an estimated 246 gigawatts of untapped renewable energy, which could generate substantial economic and employment opportunities in the coming years.
“We must also promote skills development through training and integration into our educational system to equip our old and new workforce with the skills necessary to thrive in an innovative and globally competitive economy,” he said.
He said the Philippines is well-positioned to implement supportive policies to attract significant investments and address gaps in infrastructure, transportation, energy supply and workforce skills.
“To capitalize on the manufacturing growth wave, the country must ensure that its markets remain competitive and resilient amid a rapidly changing global environment,” he said.
