May 22, 2025 – Economy, Planning, and Development Secretary Arsenio M. Balisacan underscored the Philippines’ readiness to seize a pivotal opportunity for transformation, driven by bold reforms and strategic investments in innovation, infrastructure, and human capital to drive productivity and reach the country’s potential growth. This was the central message of his keynote address at the 2025 BusinessWorld Economic Forum held on May 22.

“To broaden our economy, we need to attract more investments, generate higher-quality and better-paying jobs—particularly in manufacturing and higher-value-added services—and expand into new markets. An equally important strategy is raising the productivity of our economic sectors through the adoption of modern, value-creating innovative technologies and future-proofing the economy through transformative and forward-looking policy reforms,” he said.

Speaking for the first time at a media-organized forum as head of the newly established Department of Economy, Planning, and Development (DEPDev)—formerly the National Economic and Development Authority, or NEDA—Balisacan reaffirmed the agency’s commitment to delivering strategic, evidence-based policies that will future-proof the Philippine economy.

He outlined key global megatrends reshaping the economic landscape. These include heightened uncertainty, the rapid evolution of artificial intelligence (AI), intensifying climate risks, and demographic shifts.

“These forces are interconnected, complex, and dynamic, pushing nations to adapt, innovate, and position themselves strategically,” he noted.

While multilateral institutions such as the International Monetary Fund, World Bank, Asian Development Bank, and ASEAN+3 Macroeconomic Research Office continue to recognize the Philippines as one of Asia’s fastest-growing economies in 2025, the country’s chief economist stressed the importance of evolving beyond traditional growth drivers.

Balisacan emphasized the importance of strategic economic diversification by strengthening the country’s regional economies as growth engines driving development to prevent localized disruptions affecting the main economic centers.

“We must connect leading and lagging regions through strategic, well-coordinated investments in key programs and projects. We must harmonize and mutually reinforce interventions to maximize impact and promote inclusion,” said Balisacan.

To sustain the Philippines’ growth momentum, Balisacan emphasized that DEPDev will persist in championing reforms, programs, and projects that lower the cost of doing business, enhance sectoral competitiveness, and address human capital gaps while fostering innovation.

Balisacan also underscored the importance of improving public spending efficiency and directing limited fiscal resources toward high-impact areas such as quality education, healthcare, food security, social protection, and connectivity infrastructure.

“Committing to efficient program governance—to more effective and impactful spending—given the limited fiscal space is key to better outcomes such as productivity growth, competitiveness, and inclusion,” he said.

To raise economic productivity and foster the diffusion of new technologies, Balisacan cited the critical importance of connecting micro, small, and medium enterprises (MSMEs) to global value chains, strengthening collaboration among the academe, industry, and government, and attracting global investments and talent, including the country’s own world-class scientists, engineers, and entrepreneurs.

“This imperative is not simply about catching up but seizing a strategic moment. With foresight that draws from the lessons of the past and through our collective resolve, we can build a more competitive, inclusive, and future-ready Philippine economy,” the DEPDev chief concluded.

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