Economic Planning chief: I'm not happy with 6% growth
At the DEPDev's 2025 mid-year press chat, Balisacan said the COVID-19 pandemic has set back the country's growth.
'We lost three years of growth momentum… [Ambisyon Natin] 2040, at the current growth, is no longer feasible anymore,' the country's chief economist said.
Under the 'Ambisyon Natin 2040' roadmap, the Philippine government aspires the country to be elevated to high-income economy status with 'a prosperous middle class society where no one is poor,' 'economic growth must be relevant, inclusive and sustainable,' and 'per capita income must increase by at least three-fold.'
Balisacan, however, said the goals of the roadmap might be achieved a full decade behind 2040 or by 2050.
'If we continue our momentum, we will still [achieve] that by 2050,' the DEPDev chief, referring to the country's average economic growth rate of 6% seen in the last decade.
He said that the government's 'Ambisyon Natin 2040' goals might still be hit if the economy grows faster above 8% or at least by double-digit.
'That is the kind of aspiration we must have not only by our administration but by succeeding administrations,' the country's chief economist said.
'I am not, you know, happy with 6%, because with 6%, we will be overtaken by a race to grow faster,' Balisacan said.
The DEPDev chief said the country needs 'to solve the constraints that we face —structural, technical, institutional all that stuff.'
In his mid-year report, Balisacan said from 2023 to the first quarter of 2025, the Philippines 'remained among Asia's fastest-growing economies.'
'Unemployment fell below pre-pandemic levels, while underemployment also declined steadily in 2023 and 2024. Poverty incidence dropped to 15.5% in 2023, lifting an estimated 2.4 million Filipinos above the poverty line. Inflation eased significantly, from a peak of 8.7% in January 2023 to just 1.4% in June 2025,' he said.
'And having met our Gross National Income (GNI) per capita targets for 2023 and 2024, the Philippines is now poised to achieve upper-middle-income status in the near term. In the World Bank's estimates of GNI per capita for 2024, we were short of just $26 to become an upper-middle-income country,' he added. — RSJ, GMA Integrated News
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
GMA Network
a day ago
- GMA Network
Trump fires US labor official over jobs data
US President Donald Trump speaks during a meeting with Democratic Republic of the Congo's Foreign Minister Therese Kayikwamba Wagner and Rwanda's Foreign Minister Olivier Nduhungirehe in the Oval Office at the White House in Washington DC on June 27, 2025. REUTERS/Ken Cedeno WASHINGTON/NEW YORK — US President Donald Trump on Friday fired a top Labor Department official on the heels of a market-shocking weak scorecard of the US job market, accusing her without evidence of manipulating the figures and adding to already growing concerns about the quality of economic data published by the federal government. In a second surprise economic policy development, the door for Trump to make an imprint on a Federal Reserve with which he clashes almost daily for not lowering interest rates opened much earlier than anticipated when Fed Governor Adriana Kugler unexpectedly announced her resignation on Friday afternoon. The two developments further rattled a stock market already reeling from his latest barrage of tariff announcements and the weak jobs data. The benchmark S&P 500 Index .SPX sank 1.6% in its largest daily drop in more than two months. Trump accused Erika McEntarfer, appointed by former President Joe Biden, of faking the jobs numbers. There is no evidence to back Trump's claims of data manipulation by the Bureau of Labor Statistics, the statistical agency that compiles the closely watched employment report as well as consumer and producer price data. A representative for the BLS did not respond to a request for comment. Friday began with BLS reporting the US economy created only 73,000 jobs in July, but more stunning were net downward revisions showing 258,000 fewer jobs had been created in May and June than previously reported. "We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY. She will be replaced with someone much more competent and qualified," Trump said in a post on Truth Social. Data concerns A Trump administration official who requested anonymity said that while all economic data is noisy, the White House has been dissatisfied with how large the revisions have been in the recent data and issues with lower survey responses. The problem started during COVID and has not been addressed in the years since. "There are these underlying problems that have been festering here for years now that have not been rectified," the person said. "The markets and companies and the government need accurate data, and like, we just weren't getting that," the official said. The BLS has already reduced the sample collection for consumer price data as well as the producer price report, citing resource constraints. The government surveys about 121,000 businesses and government agencies, representing approximately 631,000 individual worksites for the employment report. The response rate has declined from 80.3% in October 2020 to about 67.1% in July, BLS data shows. A Reuters poll last month found 89 of 100 top policy experts had at least some worries about the quality of US economic data, with most also concerned that authorities are not addressing the issue urgently enough. In addition to the concerns over job market data, headcount reductions at BLS have resulted in it scaling back the scope of data collection for the Consumer Price Index, one of the most important gauges of US inflation, watched by investors and policymakers worldwide. Trump's move fed into concerns that politics may influence data collection and publication. "Politicizing economic statistics is a self-defeating act," said Michael Madowitz, principal economist at the Roosevelt Institute's Roosevelt Forward. "Credibility is far easier to lose than rebuild, and the credibility of America's economic data is the foundation on which we've built the strongest economy in the world. Blinding the public about the state of the economy has a long track record, and it never ends well." Fed change sooner than expected Meanwhile, Kugler's surprise decision to leave the Fed at the end of next week presents Trump an earlier-than-expected opportunity to install a potential successor to Fed Chair Jerome Powell on the central bank's Board of Governors. Trump has threatened to fire Powell repeatedly because the Fed chief has overseen a policymaking body that has not cut interest rates as Trump has demanded. Powell's term expires next May, although he could remain on the Fed board until January 31, 2028, if he chooses. Trump will now get to select a Fed governor to replace Kugler and finish out her term, which expires on January 31, 2026. A governor filling an unexpired term may then be reappointed to a full 14-year term. Some speculation has centered on the idea Trump might pick a potential future chair to fill that slot as a holding place. Leading candidates for the next Fed chair include Trump economic adviser Kevin Hassett, Treasury Secretary Scott Bessent, former Fed Governor Kevin Warsh and Fed Governor Chris Waller, a Trump appointee who this week dissented with the central bank's decision to keep rates on hold, saying he preferred to start lowering them now. Trump, as he was leaving the White House to spend the weekend at his Bedminster, New Jersey, estate, said he was happy to have the open slot to fill. "I would not read any political motivation into what [Kugler is] doing, although the consequence of what she's doing is she's calling Trump's bluff," said Derek Tang, an analyst at LH Meyer, a research firm. "She's putting the ball in his court and saying, look, you're putting so much pressure on the Fed, and you want some control over nominees, well, here's a slot." — Reuters
GMA Network
2 days ago
- GMA Network
AI use in PH classrooms must fit students' needs —solon
Some things must be considered first before artificial intelligence (AI) can be integrated into the classrooms, said House Basic Education and Culture Committee chairperson Roman Romulo. While AI can be an effective learning tool, Romulo said that it's important for students to develop their critical thinking. 'May advantages siya, but before we implement it fully kailangan natin pagaralan kung ano yung tamang level at kung sino yung mga estudyante na kailangan natin bigyan ng AI. Kasi mayroon ng mga pagaaral, although preliminary po yun, may lumabas na pagaaral I think from schools in Boston na sinasabi nga nila hindi naman wholesale ibigay natin yung AI sa lahat o yung technology,' he said in an interview with Bagong Pilipinas Ngayon on Friday. (It has its benefits, but before we roll it out completely, we need to carefully consider the appropriate level and which students truly need AI. There are already studies, though preliminary, I think from schools in Boston, that suggest we shouldn't just give AI or the technology to everyone wholesale.) 'Kasi maganda pa rin na nadedevelop yung learner o yung bata yung traditional way of learning. Nahahasa din papunta siyang critical thinking, kailangan talaga pinagiisipan niya yung bawat bagay,' Romulo added. (It's still beneficial for learners and children to develop using traditional learning methods. This also sharpens their critical thinking skills, requiring them to genuinely ponder every detail.) The latest Philippine Statistics Authority study showed that more than 1 in 5 Filipinos aged 10 to 64 have difficulty comprehending what they read—despite being able to read, write, and compute. National Statistician Claire Dennis Mapa said the basic literacy rate — the share of people who can read, write, and compute — is 93.1%, but only 70.8% are considered functionally literate, meaning they can also comprehend. In his fourth State of the Nation Address, President Ferdinand Marcos Jr. highlighted concerns in the education system, including literacy. 'May value talaga ang AI. Pero hindi siya pwedeng wholesale for now, one size does not fit all. Kailangan natin ma-tailor fit yung pagintroduce ng technology, pag-introduce ng AI depending po sa sitwasyon para responsible din yung paggamit ng mga developments na ito,' said Romulo. (AI truly has value. However, it can't be a wholesale solution for now; one size doesn't fit all. We need to tailor the introduction of this technology and AI depending on the situation, ensuring responsible use of these developments.) 'Pero naniniwala ako, the moment ma-full throttle at effective na ito na ginagawa ng DepEd natin, nakatutok na sa functional literacy, the computer technology will be used in the right way,' he added, referring to the Department of Education's ARAL Program which offers free tutorials and interventions to students struggling with reading, mathematics, and science. (But I believe the moment our DepEd fully and effectively implements this focus on functional literacy, computer technology will be used in the right way.) —Vince Angelo Ferreras/LDF, GMA Integrated News
GMA Network
2 days ago
- GMA Network
World Bank OKs $700-M loan for PH's community resilience project
Multilateral lender World Bank has approved a $700-million loan for the Philippine government's initiative to make communities less vulnerable to natural disasters. In a statement, the World Bank said that approximately 18 million households in the Philippines are expected to become less vulnerable to natural disasters in the coming years, 'due to enhanced community-led planning and infrastructure investments.' The Washington-based lending institution said the $874.35-million Philippines Community Resilience Project 'will engage communities in identifying climate and natural hazard risks and developing resilience plans.' To bankroll the project, the World Bank said it will provide $700 million through an 'International Bank for Reconstruction and Development loan.' The Philippine government, on the other hand, will provide the remaining $174.35 million. The World Bank said the project will prioritize 500 climate-vulnerable municipalities across 49 provinces in the Philippines. The lender added that the municipalities are selected based on their high poverty incidence and significant exposure to climate hazards. Moreover, it said the initiative will support 177 municipalities with an indigenous population of 10% or more, thereby aiding approximately 33% of the total indigenous population in the country. "By empowering local communities to take the lead in building resilience against climate change and disaster risks, the Philippines is not only addressing immediate environmental challenges but also fostering a culture of proactive engagement and resilience," said Zafer Mustafao?lu, Division Director for the Philippines, Malaysia, and Brunei. Initiatives under the program include flood and drought mitigation, landslide and slope protection, surge protection and breakwaters, windbreakers, and retrofitting of existing infrastructure to withstand extreme weather events, according to the World Bank. Moreover, the project will support erosion control, agroforestry, and other nature-based solutions for ecosystem conservation, including community forests, wetlands, marshes, and waterways, erosion control, water conservation, and agroforestry. The lender said the project would also include adoption of services and technologies in areas such as sustainable agriculture and food security —climate-smart farming innovations and small-scale irrigation systems. The World Bank said the Philippines ranks at the top of the World Risk Index due to its high vulnerability and exposure to cyclical extreme events. In 2023, out of 2.6 million disaster-related displacements, 2.1 million were attributed to two major climate-induced hydroclimatic events, namely typhoons and floods, the lender said.—LDF, GMA Integrated News
