Department of Finance (DOF) Undersecretary Domini S.D. Velasquez lauded thrift banks as “anchors of resilience” during her address at the 2025 Annual Convention of the Chamber of Thrift Banks (CTB). Her remarks underscored the vital role these institutions play in the nation’s financial stability and growth, particularly in supporting grassroots communities.
“Thrift banks carry our financial system into grassroots communities and help sustain momentum in times of volatility,” Velasquez stated, addressing a gathering of banking leaders, policy advocates, and development partners. Her presentation provided a comprehensive overview of the country’s positive economic outlook against a backdrop of evolving global macroeconomic conditions.
Despite acknowledging external risks such as global trade slowdowns and rising uncertainty, Undersecretary Velasquez emphasized the Philippines’ robust domestic economic strength, driven by strategic fiscal reforms, a significant demographic advantage, and inherent structural resilience.
Velasquez presented compelling macroeconomic data for the first quarter of 2025, revealing a Gross Domestic Product (GDP) growth of 5.4%. This growth was primarily fueled by strong household consumption, robust public construction, and an expansion in the services sector. “The growth of the Philippine economy remains robust and broadly aligned with the government’s targets,” she affirmed, citing Philippine Statistics Authority (PSA) figures that showed growth across services (6.3%), industry (4.5%), and agriculture (2.2%).
She further highlighted the country’s unique demographic strength, with a median age of 25.3 years and a labor force exceeding 51 million. Velasquez characterized the nation as being in a “demographic sweet spot,” projected to peak by 2035, indicating a sustained period of potential economic dynamism.
Discussing the nation’s fiscal strategy, Velasquez detailed the Medium-Term Fiscal Program. This ambitious plan targets a reduction in the debt-to-GDP ratio from 60.1% in 2023 to 56.3% by 2028, alongside lowering the fiscal deficit from 6.2% to 4.3%. “Our refined Medium-Term Fiscal Program ensures a solid fiscal and economic foundation as a launchpad for high takeoff,” she asserted.
Key revenue generation reforms were also spotlighted, including the CREATE MORE Act, which has already attracted ₱90.13 billion in approved investments since its enactment. Additionally, the Ease of Paying Taxes (EOPT) Act is set to streamline tax processes, complemented by the Bureau of Internal Revenue’s (BIR) Digital Transformation Roadmap 2025-2028.
Velasquez provided concrete examples of these reforms’ impact, noting that the BIR collected ₱2.2 billion in the first quarter from withholding taxes on digital platforms and an additional ₱4.0 billion through the Run After Fake Transactions (RAFT) initiative. She also cited significant non-tax revenues from five Public-Private Partnership (PPP) airport projects approved in 2024 under the new PPP Code, including major hubs like NAIA and Puerto Princesa.
Undersecretary Velasquez’s address reinforced confidence in the Philippine economy’s trajectory and the pivotal role of institutions like thrift banks in its continued success.
