The National Economic and Development Authority (NEDA) has underscored the pivotal role of a robust middle class in driving the Philippines' sustained economic growth and development.
In a keynote address at the 10th Annual Public Policy Conference, NEDA Secretary Arsenio M. Balisacan emphasized the importance of leveraging global megatrends like digitalization and climate action to empower the middle class and achieve the nation's long-term vision, AmBisyon Natin 2040.
“Their [middle class] steady income, investments in education, and consistent consumption of goods and services fuel economic progress and provide opportunities for broader national development,” Balisacan said.
The NEDA chief identified digitalization as critical in reshaping industries and generating new growth avenues, particularly in IT, BPM, and creative sectors.
He highlighted the digital economy's contribution of 8.4 percent to the country's gross domestic product (GDP) in 2023 and its creation of over 9.68 million jobs.
Climate action was also cited as a transformative megatrend.
Balisacan noted the potential of green jobs and renewable energy to drive economic growth and environmental sustainability.
He mentioned the Philippines' estimated 246 gigawatts of untapped renewable energy, which could generate substantial economic and employment opportunities.
“We must also promote skills development through training and integration into our educational system to equip our old and new workforce with the skills necessary to thrive in an innovative and globally competitive economy,” he added.
The NEDA chief further emphasized the Philippines' favorable position to attract investments and address infrastructure, transportation, energy supply, and workforce skills gaps.
Discussing the country's aspiration to achieve Upper Middle-Income Country (UMIC) status, Balisacan noted that with the right policies and a favorable external environment, the Philippines can sustain its upward momentum to reach a gross national income per capita level that places the economy within upper-middle-income country territory by late next year.
“To achieve our long-term vision of a predominately middle-class society, we must have a just transition supported by strong and inclusive governance,” Balisacan said.
“We must prioritize the development of our people, align workforce skills with industry needs, and strengthen social protection systems to ensure that no one is left behind,” he concluded.