DEPDev: Philippines well-positioned to withstand global shocks

MANILA, Philippines —  The Philippine economy is well-positioned to weather global challenges, even as growth projections have been recalibrated to reflect domestic and external conditions, according to the Department of Economy, Planning and Development (DEPDev).

This was the message of DEPDev Secretary Arsenio Balisacan’s keynote presentation, which was delivered by DEPDev Undersecretary Rosemarie Edillon at the 2026 Jollibee Group Mid-Year Economic Briefing on June 16.

Citing the country’s sound macroeconomic fundamentals, resilient domestic demand and growing services sector, Balisacan emphasized that the economy is now in a stronger position despite geopolitical tensions, shifting trade relationships, financial uncertainty and climate risks.

While growth projections have been recalibrated, Balisacan said that the medium-term outlook remains favorable.

Asked what the new growth projections are, he told The STAR that “the decision should be out within the week or as soon as all signatures of the DBCC (Development Budget Coordination Committee) members are secured.”

Earlier, Balisacan said that the government is aiming for a five to six-percent gross domestic product growth for this year.

For 2027, the government expects the economy to grow by 5.5 to 6.5-percent, while the growth goal for 2028 is six to seven percent.

In the first quarter, the economy grew by 2.8 percent, the weakest since 2021, as the flood control controversy and Middle East conflict weighed on economic activity.

Balisacan said that household consumption and services, which have long served as the country’s growth pillars, are expected to continue to anchor the country’s development trajectory.

However, there is a need to broaden the growth drivers by attracting more investments, improving productivity and promoting industrial transformation.

Beyond restoring growth, the government wants to ensure that growth remains inclusive, creates jobs and resilient to future shocks.

To achieve this, Balisacan’s presentation outlined the following priorities: mitigating external risks and containing inflationary pressures, fast-tracking the implementation of high-impact infrastructure projects, and strengthening governance to restore public trust and sustain investor confidence.

Aside from these near-term priorities, Balisacan underscored the need to invest in human capital development to fully harness the country’s demographic advantage, particularly its young population and growing working middle class, both of which support domestic demand and productivity.

“Demographics create possibilities, not guarantees. A young population becomes a true advantage only when it is healthy, educated, productive and connected to opportunity,” he said.

Given the importance of governance in reducing uncertainty and encouraging investment, the government continues to pursue reforms to strengthen transparency, accountability, consumer protection and institutional effectiveness.

To achieve AmBisyon Natin 2040’s vision of a prosperous and predominantly middle-class society, Balisacan highlighted the importance of continued collaboration of the government, businesses, workers, communities and civil society.

“Growth has always been about more than expanding an economy or growing a business. It is about creating opportunities, uplifting communities and improving lives,” he said.

“Our shared responsibility is to build an economy where more Filipinos can participate in — and benefit from — our nation’s progress,” he said.