“Inflation must be tackled with both urgency and nuance”
As 2025 approaches, the air buzzes with guarded optimism about the Philippines’ economic trajectory. Buoyed by a series of reforms and an uptick in foreign investments, the national growth story seems promising.
But ask the average Filipino consumer, and you’ll hear a mix of hope and uncertainty. Behind the glowing GDP projections and rising employment statistics lie pressing concerns about inflation, job quality, and wage disparities.
It’s a balancing act—sustaining economic goals while ensuring that these benefits are felt at the grassroots level.
Let’s consider the numbers. Economic experts project growth rates of 6.0-8.0 percent for 2025-2028, driven by structural reforms like the CREATE MORE Act and ongoing efforts to attract foreign investors.
The government is betting big on sectors like manufacturing and infrastructure, expecting PEZA-approved investments to cross P235 billion. Even the campaign spending in the upcoming midterm elections is expected to bring a temporary economic boost. But what do these mean for the average Filipino?
Let’s talk inflation—a word that triggers an eyeroll from consumers. Although the headline inflation rate stabilized at 3.2 percent in 2024, prices for essentials like food, utilities, and transportation remain painfully high. These aren’t abstract figures but realities that define family budgets.
Inflation remains the top concern for 71 percent of Filipinos, according to a recent Pulse Asia survey.
For many, wage increases lag far behind the actual cost of living, perpetuating a cycle of financial insecurity. Fixing inflation isn’t just about fiddling with interest rates; it requires targeted interventions in agriculture, energy, and transportation—all sectors where inefficiencies directly affect consumers.
Then there’s the Filipino workforce, a bright spot that shines unevenly. The employment rate climbed to an impressive 96.1 percent by late 2024 (PSA), but beneath the surface, underemployment tells a different story.
Nearly 12.6 percent of employed individuals—over 12 million Filipinos—are stuck in low-paying, insecure jobs. For a country that celebrates its OFWs as modern heroes, shouldn’t local opportunities provide similar dignity and financial stability?
Policies need to move beyond job creation to job quality. Workers who earn enough to save, spend, and invest spur economic activity, benefitting everyone from sari-sari stores to large conglomerates.
On the reform front, credit is due to President Marcos Jr.’s administration for creating a more investment-friendly environment. Initiatives like the Foreign Investment Promotion and Marketing Plan signal a pivot toward sustainable, investment-led growth. However, these measures must be felt by ordinary Filipinos.
According to a Pulse Asia poll commissioned by the Stratbase Group, the public is increasingly aware of this gap, as seen in their expectations for 2025 Senate candidates. Job creation and wage increases top the list of priorities, while issues like financial literacy and corruption follow closely.
These concerns highlight an electorate that’s not just waiting for handouts but demanding accountability and systemic change.
Amid all this, it’s worth reflecting on the resilient nature of Filipinos.
The expected seasonal holiday spending spree is driven by Filipino spirit of optimism. But the long queues at remittance centers, the growing popularity of online selling platforms, and the high demand for side gigs tell a story of survival—not thriving.
So, what’s the way forward? First, inflation must be tackled with both urgency and nuance.
Streamlining supply chains, boosting agricultural productivity, and investing in renewable energy could temper rising costs while creating jobs.
Second, a deeper focus on underemployment is needed, perhaps through reskilling programs and wage subsidies that target high-growth sectors like technology and manufacturing.
Lastly, governance reforms, especially around transparency and anti-corruption, are non-negotiable. After all, how can we attract investments or improve public services when inefficiency and graft bleed the system dry?
The promise of economic growth must be a shared one. Without deliberate policies to close gaps in income security and job quality, the risks of inequality and disillusionment loom large.
But with strategic reforms, bold leadership, and an engaged citizenry, the Philippines can turn its promise into reality—not just for investors and policymakers but for the families who wake up every day with dreams of a better life.
2025 will be a year where policies will be tested, livelihoods will be shaped, and trust in institutions will either grow or wane. As consumers, workers, and voters, we must continue to push for an economy that not only grows but also uplifts—an economy that proves growth is truly inclusive.
I wish everyone Blessings of happiness, health, and good fortune in 2025.
