Philippine Economy Grows Over 6% Under Marcos, Outpaces Regional Neighbors

Since President Ferdinand R. Marcos Jr. took office in 2022, the Philippine economy has grown by an average of 6.1%, surpassing the growth rates of neighboring countries. Economic administrators attribute this success to strong domestic demand and a rebound in exports.

Philippine Economy Averages 6.1% Growth, Surpassing Regional Peers with Strong Domestic Demand and Exports

According to economic administrators, the average economic growth rate in the Philippines from the third quarter of 2022 to the first quarter of 2024 was 6.1 percent.

The Philippine economy experienced a 5.7 percent expansion in the first quarter of 2024, surpassing Indonesia (5.1 percent), Malaysia (4.2 percent), Singapore (2.7 percent), and Thailand (1.5 percent).

“Despite external headwinds, we are expected to continue surpassing most emerging economies, finishing strong at 6.0 (percent) to 7.0 percent in 2024 and expanding further to 6.5 (percent) to 7.5 percent in 2025, roughly consistent with the average growth forecasts of multilateral organizations,” the Development Budget Coordination Committee has said.

According to the most recent projections from the Asian Development Bank (ADB) and the International Monetary Fund (IMF), the Philippine economy is expected to expand by a minimum of 6% in 2024 and 2025.

According to the International Monetary Fund (IMF), Philippine economic growth is anticipated to stabilize at 6 percent this year and increase to 6.2 percent in 2025.

In a report published on July 16, the ADB also noted that the Philippines is expected to experience a 6.2 percent increase in 2025 and a 6% increase in 2024.

“Domestic demand, along with a recovery in merchandise exports, drove the 5.7 percent GDP (gross domestic product) growth in Q1 (first quarter) 2024. Household consumption growth, while below last year’s level, remained the main contributor supported by low unemployment and remittances from overseas workers,” the ADB said in its Asian Development Outlook report.

The ADB also reported that public infrastructure spending continued to stimulate growth.

The ADB reports that merchandise exports, particularly electronic products, have experienced a rebound, while services exports, such as tourism and business process outsourcing, have remained buoyant.

“Moderating inflation and expected monetary easing in the second half of 2024 will support household consumption and investment,” it added.

NEDA Chief Emphasizes Infrastructure Development and Diversification for Sustainable Economic Growth in the Philippines

In contrast, Secretary Arsenio Balisacan of the National Economic and Development Authority (NEDA) stated that the economy is experiencing ongoing expansion; however, the long-term sustainability of economic growth necessitates the diversification of growth generators and the development of the nation's infrastructure, according to INQUIRER.net.

“By expanding and upgrading our infrastructure, we aim to create enabling conditions for high-quality job creation for millions of Filipinos, raise the competitiveness of our local industries, diversify our growth drivers to strengthen economic resilience, and enhance regional connectivity by linking our leading and lagging regions,” Balisacan said.

He stated that the Marcos administration is dedicated to establishing an environment conducive to infrastructure development, as evidenced by the Philippine Development Plan (PDP) 2023-2028, which delineates the nation's socio-economic transformation agenda.

The PDP is designed to resolve the obstacles facing the country's infrastructure sector. Numerous analysts and observers regard these obstacles as a substantial impediment to investment opportunities.

“The Marcos administration was quick to act, and I believe we have made a strong start these past two years. The government enacted and implemented key policy reforms and initiatives to create a more enabling policy and regulatory environment for investment and economic growth,” Balisacan said.

He observed that continuing the evaluation, approval, and rollout of the 185 Infrastructure Flagship Projects under the "Build Better More" program is essential for attaining the 5 percent to 6 percent annual target for infrastructure spending relative to GDP.

The collective value of these significant initiatives, which span various sectors, is PHP9.54 trillion, or approximately USD163 billion.

The Samar Pacific Coastal Road Project, the Integrated Disaster Risk Reduction and Climate Change Adaptation Measures in the Low-Lying Areas of Pampanga Bay Project, and the Flood Risk Improvement and Management Project for Cagayan de Oro River are the three projects that have been completed to date.

According to Balisacan, 63 additional projects are currently in progress, 31 have been certified for implementation, six are awaiting government approval, and 82 are in the preparation phase.

In addition to infrastructure development, he emphasized enhancing export performance and increasing investments.

“While we continue to buoy consumption and enhance services, we must reinvigorate the other pillars of economic growth – investment and exports, particularly manufacturing and agribusiness – to sustain growth and make it more resilient in the years and decades to come,” Balisacan said.