The Department of Finance’s (DOF) prudent fiscal and economic management is yielding tangible benefits for Filipinos, Secretary Ralph Recto said Monday.
Anchored on the Medium-Term Fiscal Framework (MTFF), he said the DOF is steadfast in its mission to reduce the deficit and debt-to-gross domestic product (GDP) ratios, create more quality jobs, increase household incomes and cut poverty to single digits by 2028.
The Philippine economy has expanded by an average of 5.9 percent since President Ferdinand Marcos Jr. took office in 2022, making it one of Asia’s fastest-growing economies, the DOF said.
The Philippines ranked second to Vietnam (7.0 percent) in economic growth in the first quarter of 2025, matching China’s performance (5.4 percent) and outpacing its ASEAN neighbors, including Indonesia (4.9 percent), Malaysia (4.4 percent), Singapore (3.8 percent) and Thailand (3.1 percent).
The unemployment rate eased to 3.9 percent in May, bringing the 2025 average down to 4 percent and outperforming the government’s target range of 4.8 percent to 5.1 percent for 2025.
The Marcos Jr. administration also made every effort to shield Filipinos from the effects of inflation, especially low-income households.
Inflation rate for the poorest households dropped below zero to -0.4 percent in June 2025, the lowest since the pandemic.
Rice, once the main culprit behind rising prices, saw a historic decline of 14.3 percent in June 2025—the sharpest drop recorded since 1995. Overall inflation is now down to 1.4 percet with a year-to-date average of just 1.8 percent, settling comfortably below the government’s 2 percent to 4 percent target range.
In 2024, the DOF collected P4.4 trillion in revenues, exceeding its P4.3 trillion target without imposing new taxes. The revenue effort reached 16.72 percent of GDP—the highest in 27 years.
From January to June 2025, total revenues reached P2.26 trillion, or 5.15 percent higher year-on-year. Tax collections continued to post double-digit growth, reaching P2.03 trillion or 10.74 percent more than last year’s level.
Behind these figures and reforms is the ultimate goal of cutting poverty incidence to a single digit or 9 percent by 2028, according to the DOF.
As of 2023, the poverty rate fell to 15.5 percent, surpassing pre-pandemic levels and government targets. This translates to 2.5 million Filipinos lifted out of poverty.
“With inflation easing, employment rising to record highs, the deficit and debt on a downward path, and revenues increasing, the government is optimistic that 8 million more Filipinos will be lifted out of poverty by the end of the President’s term,” the DOF said.
“The DOF stands ready to support the President’s economic agenda and is committed to making every peso work for the Filipino people,” it said.
