The state of the economy

Is the economy doing well? This question must be asked as President Marcos enters his third year as Chief Executive of the republic.

As you may expect, the response to this question is not a straight one… So let me break it down.

The Philippine economy is perhaps the most overlooked and under-rated one on the planet. For decades, we’ve been typecast as an economic underachiever who is unable to get its leadership act together. In a way, the stereotype is right. Our per capita income of $4,030 is less than a third of the global average of $13,000. Our poverty rate is at 16.4 percent, the highest among the ASEAN 6, and unemployment persists at 4.7 percent.

As for government leadership, our legislature is composed of members of dynasties, most of whom are unqualified and corrupt. Save for a few outstanding legislators like Senators Hontiveros and two or three others, the rest are mediocre who forward their own interests on the public’s dime. And as for the President, we would like to feel his leadership more on pressing issues.

Be that as it may, we cannot negate the fact that the economy has grown rapidly over the last 15 years and continues to do so. Between 2010 and 2019, the economy grew by an average rate of 6.4 percent, outpacing the rest of emerging economies which grew by just 4.0 percent. Between 2021 and 2023, the economy expanded by 6.3 percent, again outpacing other emerging economies which grew by only 4.6 percent. In the medium term, the World Bank, IMF and ADB agree that the Philippines will be Asia’s second fastest growing economy, after India, possibly through 2028.

And although poverty and unemployment remain high, they have in fact declined in tandem with the economy’s growth. Our fiscal health is strong too, with a debt-to-GDP ratio of just 57 percent, dollar reserves sufficient for eight months of imports and rising government revenues. Investments in infrastructure is above five percent of GDP, with over 197 projects worth $156.4 billion in the pipeline.

Still, we cannot blame the world for stereotyping us as an economic underachiever. For one, our country brand is confusing. While Presidents Aquino and Marcos tried to sell the Philippines as