MANILA – The Philippine economy has been performing remarkably well, according to Socioeconomic Planning Secretary Arsenio Balisacan. Speaking at a press conference in Pasay City, Balisacan highlighted the Marcos administration’s success in driving ‘rapid and inclusive’ growth, despite not meeting the set targets for 2024. He attributed the shortfall to uncontrollable external and domestic factors but praised the economy’s performance as ‘quite impressive’ when compared to other Asian countries. The Philippines has maintained its position as one of the top performers among major emerging economies in Asia, with a growth rate of 5.8 percent in the first three quarters of 2024.
Balisacan acknowledged that achieving the 6 percent growth target for 2025 might be challenging due to the impact of recent typhoons on agriculture and other industries. However, he remains optimistic about a swift recovery in the agricultural sector. Budget Secretary Amenah Pangandaman emphasized the importance of reaching the growth target to maintain an ‘inclusive and sustainable’ economy. During the 2025 Budget Execution Forum, she outlined the government’s goal to meet the economic targets of 6 to 8 percent GDP growth, reduce the deficit-to-GDP ratio, achieve upper middle-income status, and lower poverty levels to single digits.
Balisacan stressed the critical role of government spending, which constitutes 15 to 20 percent of the total economy, in enabling efficient economic operations. He noted that while the private sector drives the majority of economic activity, government expenditure is essential for achieving the set targets. Pangandaman mentioned that the review of the 2025 budget is halfway complete, with an estimated PHP30 billion needed to address budget cuts made by Congress. She called for better coordination between the executive and legislative branches to prevent future budget gaps.
Executive Secretary Lucas Bersamin assured that President Ferdinand R. Marcos Jr. is committed to ensuring the proper implementation of the 2025 national budget, which stands at PHP6.326 trillion after Marcos vetoed over PHP194 billion in projects not aligned with the administration’s priorities. The President is actively engaging with government agencies to review the budget and identify any gaps in their appropriations.