The Philippines’ 5.6 percent Gross Domestic Product (GDP) growth in 2024, while a testament to the economy’s resilience, fell short of the government’s target of at least six percent. This modest growth rate underscores the challenges the country faces amid global economic headwinds and domestic constraints. For a nation aspiring to uplift its most vulnerable population, this growth figure is more than a statistic—it is a reflection of the opportunities missed to create jobs, reduce poverty, and improve the quality of life for millions of Filipinos. It is imperative to address both external and internal challenges while implementing concrete measures to achieve sustainable and inclusive growth.
For the most needy families, the 5.6 percent growth rate highlights the insufficient pace of progress needed to significantly reduce poverty and inequality. The poorest households, who rely heavily on stable employment and affordable goods, continue to bear the brunt of high inflation and limited access to opportunities. A higher growth rate, ideally above six percent, is crucial to generating more jobs, increasing incomes, and funding social programs that directly benefit the marginalized. Without accelerated growth, the gap between the rich and the poor risks widening further, perpetuating cycles of poverty.
The Philippines’ ability to hurdle external and internal challenges is vital to achieving its economic potential. Externally, the country must navigate a volatile global environment marked by slowing trade, rising interest rates, and supply chain disruptions. Internally, issues such as bureaucratic inefficiencies, inadequate infrastructure, and uneven regional development continue to hinder progress. It is imperative to adopt policy reforms, make strategic investments, and enable good governance.
First: Boost infrastructure development. Accelerating the Build Better More program and other infrastructure projects will not only create jobs but also enhance connectivity and productivity. Improved transportation networks, digital infrastructure, and energy systems are critical to attracting investments and supporting industries.
Second: Strengthen agriculture and food security. The agricultural sector, which employs a significant portion of the population, remains underdeveloped. Investing in modern farming technologies, irrigation systems, and supply chain logistics can increase productivity, stabilize food prices, and reduce rural poverty.
Third: Enhance education and skills training. A skilled workforce is essential to driving innovation and competitiveness. Expanding access to quality education and vocational training programs will equip Filipinos with the skills needed for higher-paying jobs in emerging industries.
Fourth: Attract foreign investments. Streamlining regulatory processes, ensuring policy consistency, and offering competitive incentives can make the Philippines a more attractive destination for foreign investors. Focus should be placed on high-growth sectors such as renewable energy, technology, and manufacturing.
Fifth: Promote regional development. Addressing the uneven distribution of economic opportunities requires targeted interventions in lagging regions. Decentralizing economic activities and empowering local governments can spur growth outside Metro Manila and create more inclusive development.
The 5.6 percent GDP growth is a reminder that while the Philippines has made strides, much work remains to be done.
To remain competitive with ASEAN neighbors, the Philippines must also address structural bottlenecks and leverage its strengths. Countries like Vietnam and Indonesia have outpaced the Philippines in attracting manufacturing investments due to their more business-friendly environments and robust infrastructure. The Philippines can learn from their success by improving ease of doing business, reducing red tape, and fostering public-private partnerships. Additionally, the country should capitalize on its young, English-speaking workforce and growing IT-BPO sector to position itself as a regional hub for innovation and services.
The time to act is now—for the sake of the most needy families and the nation’s collective progress.