Diversified, productive and inclusive growth is key to a strong and resilient Philippine economy amid global uncertainties, according to Secretary Arsenio Balisacan of the Department of Economy, Planning and Development (DEPDev).
Speaking at the Economic Journalists Association of the Philippines’ (EJAP) economic forum, Balisacan said the country needs to expand its demand side of growth beyond household consumption by building on investments and exports.
Shifting growth toward the manufacturing sector and higher value-added services is projected to provide more quality jobs, better wages and stable employment for skilled and semi-skilled workers, he added. This comes as services retain their position as the country’s top sector, while structural challenges continue to affect agriculture and industry.
Balisacan also cited the need to strengthen regional economies by empowering them against local economic shocks and connecting them with fast-growing economic sectors. This can help broaden the geographic base of the Philippines’ economic growth, which has been concentrated in Metro Manila, Central Luzon and CALABARZON since the 2000s.
The DEPDev chief said investing in better infrastructure, advanced technologies and technological innovations could help boost productivity. He said prioritizing quality education, strengthening healthcare and empowering the Filipino workforce are essential to fully harness the country’s “demographic dividend.”
“Our nation is advancing during a pivotal demographic window—marked by a growing working-age population and declining fertility and dependency rates—conditions that, if harnessed well, can accelerate economic growth,” Balisacan said.
He also acknowledged the emerging global growth of automation and artificial intelligence, while citing the importance of reskilling workers in roles vulnerable to automation and expanding job opportunities where human skills and AI can work together.
“A future-ready, competitive, and inclusive economy requires attracting strategic investments, expanding into new markets, and boosting productivity through technological diffusion and innovation,” Balisacan said.
“To achieve this, we must sustain reform momentum, adopt transformative policies, equip a workforce ready for the future, and fast-track the development of robust, accessible digital and energy infrastructure,” he said.
