President Marcos’ chief economic manager is confident that the country can uplift approximately 2.5 million poor Filipinos annually, given sustained economic growth of at least six percent bolstered by government borrowings.

Finance Secretary Ralph G. Recto is optimistic about achieving a single-digit poverty rate of nine percent by the end of President Marcos' term in 2028, citing the strong economic expansion as a key driver, even with the government's increasing debt burden.

Recto rebutted claims suggesting that the government's continuous borrowing is futile, given the persistent challenges such as high poverty and unemployment in the Philippines.

According to the finance chief, despite the nominal debt stock typically doubling in each administration since 1986, the rate of economic growth has consistently exceeded it, leading to improved livelihoods for Filipinos.

In 1986, the government's debt was only P300 billion. Fast-forward to June 2024, it has ballooned to P15.48 trillion, a monumental increase of over 5,000 percent from the past six administrations.

He emphasized that borrowing, which contributes to the government's nominal debt, is justifiable as long as it helps boost economic activity that generates income for Filipinos, especially those in poverty.

Recto pointed out that since the government started investing in infrastructure projects partly financed through borrowings, the number of employed Filipinos surged by 51 percent, from 32.3 million in 2005 to 48.8 million by 2024.

Additionally, he said the proportion of full-time employed individuals in the workforce rose significantly from 50.5 percent in 2005 to 64.2 percent today.

“Two-thirds [of employed individuals] are already in the formal sector,” Recto explained.

In the last two years alone, Recto added that around two million Filipinos escaped poverty after the pandemic.

Regarding the Marcos administration, Recto noted that the government's debt burden is forecasted to increase by 37 percent to P20 trillion by the end of its term in 2028, from P14.6 trillion in 2023.

However, Recto also cited that the country's nominal gross domestic product (GDP) would grow at a significantly faster rate of 52 percent from 2023 to 2028, expanding from P24.3 trillion to P37 trillion.

Recto said this level of GDP growth could help lift approximately 2.5 million poor Filipinos annually, enabling them to improve their standard of living by increasing their income and breaking the cycle of poverty.

"If we grow by an average of six to seven percent between now and 2028, we will be able to achieve that; the data shows it. We are already starting. And by 2030, the Philippines will be the 13th largest consumer market globally,” Recto said.