DEPDev Pushes Broader Growth Strategy to Sustain Philippine Economy

Lifestyle | Culture and Tradition Posted on 2026-08-15 02:23:14

MANILA – The Philippines needs to broaden its economic growth base by strengthening investments, exports, industries and agriculture alongside the traditionally strong consumption and services sectors, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan said Friday.

Speaking at the Economic Journalists Association of the Philippines (EJAP) Economic Forum at the Bangko Sentral ng Pilipinas (BSP) in Manila, Balisacan said diversifying the country’s sources of growth is essential to achieving faster, more sustainable and inclusive economic development.

“We need to diversify the sources of our growth to include, on the demand side, more investment and exports, and on the supply side, industry and agriculture,” Balisacan said.

His remarks came as the Philippine economy recorded a 2.3-percent growth in the second quarter, easing from the 2.8-percent expansion posted in the first quarter.

Despite the recent slowdown, Balisacan remained confident that economic activity would recover in the succeeding quarters.

He noted that the Philippines has increasingly positioned itself among Southeast Asia’s faster-growing economies over the past 15 years, challenging the country's previous reputation as a regional laggard.

“The last three months of bumps would not eliminate that narrative,” Balisacan said, expressing confidence that the expected recovery in the coming quarters and years would reinforce the country’s long-term growth trajectory.

Industry and agriculture seen as key pillars

Balisacan emphasized that industrialization remains an important component of the Philippines’ development strategy.

He said the country can strengthen economic growth by revitalizing its industrial sector while simultaneously rebuilding the productivity and competitiveness of agriculture.

“We can get back to industry, and we can revitalize agriculture to reinforce the pillars,” he said.

He also pointed to innovation as a critical long-term driver of productivity and economic expansion, stressing that sustained improvements in productivity fueled by technological innovation will ultimately determine the country’s capacity to increase gross domestic product (GDP).

Workforce must adapt to AI, emerging technologies

The DEPDev chief also underscored the need to continuously upgrade the skills of Filipino workers as emerging technologies and artificial intelligence (AI) reshape industries.

Balisacan said concerns that AI could immediately undermine the country’s information technology and business process management (IT-BPM) industry may be overstated, noting that the sector continues to expand despite the rapid development of AI technologies.

He said the Philippines’ ability to adapt provides reason for optimism, but emphasized that workforce upskilling must remain a priority to ensure Filipino workers can participate in emerging technology-driven opportunities.

Growth must be resilient and inclusive

Beyond achieving higher GDP growth, Balisacan stressed that the economy must also become more resilient to external and domestic shocks.

He cited social protection, food security, education and healthcare as critical components of inclusive development, particularly in ensuring that economic gains translate into better living conditions for Filipinos.

For the remaining two years of the Marcos administration, the government is targeting 5 to 6 percent economic growth, while seeking to keep inflation within the 4 to 5 percent range in 2027 and 2 to 4 percent in 2028.

The administration also aims to bring the national poverty rate below 10 percent.

Balisacan said the government’s immediate priority is to accelerate the implementation and completion of strategic programs and infrastructure projects while maintaining price stability.

The government will also focus on investing in human capital, improving public spending efficiency, strengthening fiscal space and laying a stronger foundation for productivity and innovation.

The broader strategy, Balisacan said, is not simply to make the Philippine economy grow faster, but to build an economy that is more diversified, productive, inclusive and capable of withstanding future shocks.