The Department of Economy, Planning, and Development (DEPDev) today reaffirmed its unwavering commitment to ensuring that the Philippines’ significant economic advancements translate into inclusive, sustainable growth benefiting every Filipino. This announcement follows President Ferdinand R. Marcos Jr.’s State of the Nation Address (SONA), highlighting the administration’s progress in food security, job quality, and public service delivery.
DEPDev Secretary Arsenio M. Balisacan emphasized that while the nation has achieved substantial economic gains in the first half of the Marcos administration, driven by deliberate reforms and comprehensive government efforts, sustained work is essential to fully realize the targets outlined in the Philippine Development Plan (PDP) 2023-2028.
“As the President rightly pointed out, improvements in our statistical measures mean little if they do not translate into better lives for the ordinary Filipino,” said Secretary Balisacan. “We’ve made meaningful progress, but we cannot afford complacency. The second half of the administration is crucial in addressing persistent challenges and accelerating public service delivery, especially in areas that matter most to our people: education, health and wellness, food security and agriculture, as well as basic services such as transportation, energy, water, and digital connectivity.”
Strong Economic Fundamentals Amidst Global Headwinds
Despite various global and domestic challenges, the Philippines has demonstrated improved development outcomes and maintained sound macroeconomic fundamentals. The Gross Domestic Product (GDP) grew by an average of 5.7 percent in 2024 and 5.5 percent in 2023. This growth was accompanied by a notable reduction in poverty incidence, which decreased from 18.1 percent in 2021 to 15.5 percent in 2023. Encouragingly, income growth was faster among the poorer half of the population, signaling more inclusive growth. Unemployment has fallen below pre-pandemic levels, and underemployment has steadily improved throughout 2023 and 2024.
Furthermore, inflation has slowed considerably, with food inflation dropping significantly from 11.2 percent in January 2023 to a mere 0.1 percent in June 2025. Fiscal indicators remain manageable, a testament to the government’s fiscal consolidation efforts and enhanced tax administration.
Prioritizing Tangible Improvements for Filipinos
Secretary Balisacan underscored that true progress is measured by every Filipino’s ability to afford necessities and access quality employment. To achieve this, he called for sustained and transformative investments in modernizing the country’s food systems and labor markets, strengthening resilience to shocks, and eliminating barriers to productivity and innovation.
“We must focus on the most impactful interventions: modernizing agriculture, upskilling our workforce, improving productivity, and enabling innovation across sectors through forward-looking policy reforms, stronger collaboration, and strategic alignment at various levels of governance,” Balisacan stated. “These are the building blocks of a resilient and dynamic economy, where growth leads to tangible improvements in people’s lives.”
He also highlighted the importance of supporting vulnerable workers and households, particularly those susceptible to climate risks, global headwinds, and price volatility, through continued targeted assistance to ease cost-of-living pressures.
Bolstering Food Security and Agricultural Productivity
To strengthen food security, the government has implemented concrete measures to boost production, stabilize supply, and keep food prices affordable. Key initiatives include:
Benteng Bigas Meron Na Program: Launched this year, this program offers affordable milled rice to vulnerable groups through KADIWA centers, currently active in select areas of Luzon and the Visayas, with planned expansion to more provinces in the Visayas and Mindanao.
Agricultural Modernization: Over 37,000 farm machines have been distributed to 7,338 farmer groups, and 12,445 units of machinery and equipment have been supplied to 6,869 cooperatives and associations, resulting in a PHP2 per kilo reduction in the cost of palay.
Rice Processing System Facilities: As of May 2025, 109 out of 151 targeted facilities have been established, with 101 already operational.
Supportive Infrastructure and Policies: Investments in farm-to-market roads, extended fish import permits, and closer coordination between the Department of Agriculture and the Food and Drug Administration to ensure the availability of vaccines for African Swine Fever and Avian Influenza are all aimed at reinforcing resilient food supply chains, reducing price volatility, and protecting household purchasing power.
Future-Proofing the Philippine Economy
“We are committed to building on our momentum and transforming the economy even as we navigate the various challenges that confront us,” Balisacan added. “By doing so, and working alongside every Filipino under a Bagong Pilipinas, we stay on course toward a matatag, maginhawa, at panatag na buhay para sa lahat.”
To adapt to global trends and emerging challenges, DEPDev is set to release the Midterm Update of the Philippine Development Plan 2023-2028 by the end of the month. This updated Plan will outline strategies to overcome persistent implementation bottlenecks, respond to emerging global megatrends, and accelerate progress toward achieving the country’s development goals.
