Per capita income in the Philippines continued to rise at a rapid pace and now exceeded the pre-pandemic level by more than 10 percent, according to economic managers.
Speaking at the Development Budget Coordination Committee’s (DBCC) national budget briefing to the House of Representatives Committee on Appropriations, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said the real GDP per capita in the first quarter of 2024 grew by 4.8 percent and was higher than its pre-pandemic level by over 10 percent.
Balisacan provided an overview of the country’s recent economic performance and focused on the country’s gains in national income, employment and poverty indicators.
He cited the latest labor force survey figures from May 2024 showing a steady decline in the underemployment rate—an indicator of job quality—as it reached 9.9 percent, the lowest figure recorded since 2005.
Citing the 2023 official poverty statistics report, Balisacan said poverty incidence declined to 15.5 percent from 18.1 percent between 2023 and 2021, translating into 2.45 million fewer Filipinos living in poverty and 1.71 million fewer food-poor individuals.
Meanwhile, Department of Finance (DOF) Secretary Ralph Recto highlighted the country’s progress toward achieving the fiscal program for the year, noting that the country already achieved half of its targets for total revenue collection, with total revenues growing by 15.6 percent to P2.15 trillion in the first half of 2024.
Recto assured the members of the Committee on Appropriations of the DOF’s commitment to sound and prudent fiscal management with the debt-to-GDP ratio projected to ease to 60.4 percent in 2025.
Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona drew attention to the country’s easing inflation outlook, which allows the central bank to maintain its current monetary policy settings for the time being.
Remolona still stressed the need to effectively implement non-monetary measures on the supply side to reduce and manage inflation. These include measures related to increasing agricultural productivity, as well as tariff modification and importation to improve food supply.
The economic managers stressed the need to sustain the government’s ongoing initiatives and priorities that are in line with the Philippine Development Plan 2023-2028 while integrating lessons learned from previous years into the design and implementation of its programs and projects for 2025.
“To boost growth next year, the Marcos administration will continue to implement the strategies we have set in the Philippine Development Plan 2023-2028, guided by the lessons we have identified in the Philippine Development Report 2023,” said Balisacan.
Department of Budget and Management (DBM) Secretary Amenah Pangandaman detailed the proposed 2025 national budget of P6.352 trillion, of which more than half (or 62.6 percent) would be allocated for both social and economic services.
She said of the proposed budget, P977.6 billion, or about 15.4 percent, is allocated for education, and P297.6 billion for healthcare.
Pangandaman said P4.057 trillion is allocated for regional development.
