The Philippine economy, while falling short of its growth target in 2024, is projected to benefit from easing inflation in 2025. Finance Secretary Ralph G. Recto anticipates lower interest rates and increased consumption, driven by the full implementation of the Create More Act and a robust national budget.
Despite falling short of its growth target, the Philippine economy is projected to benefit from easing inflation in 2025. Finance Secretary Ralph G. Recto stated that lower inflation would allow the government to reduce interest rates, stimulating consumption. The country's GDP growth reached 5.6 percent in 2024, with a 5.5 percent growth in the fourth quarter of 2023 and an average of 5.5 percent for the full year 2023.
This outcome, while below the target, places the Philippines among the fastest-growing economies globally. Recto attributed this resilience to the government's strategies despite facing external and local challenges such as extreme weather events, geopolitical tensions, and subdued global demand.Recto expressed optimism about the economic outlook for 2025, citing the potential for lower interest rates to further boost consumption. He highlighted the anticipated influx of investments due to the full implementation of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (Create More) Act. The Act attracted global investors during events like the World Economic Forum and Philippine Business Dialogue in the Netherlands, with the interim Implementing Rules and Regulations issued in December 2024 and the final IRR expected to be signed in February 2025. Furthermore, Recto emphasized the role of the P6.326-trillion 2025 national budget as a powerful tool to mitigate risks and deliver economic benefits to Filipinos. He noted President Ferdinand R. Marcos Jr.'s continued efforts to identify funding gaps across national government agencies, ensuring efficient and impactful allocation of resources. The extension of the Rice Competitiveness Enhancement Fund (RCEF) until 2031, with an increased allocation of P30 billion, is expected to enhance local rice production, support farmers, and stabilize rice prices. The government is also actively combating African Swine Fever (ASF) through vaccination programs to prevent disruptions in pork supply. Additionally, the National Economic and Development Authority (Neda) is finalizing the Trabaho Para sa Bayan (TPB) Plan, a 10-year employment roadmap aimed at improving workforce employability and generating at least three million jobs by 2028. Recto concluded that despite persistent domestic and external headwinds in 2025, the government will continue implementing growth-enhancing strategies to ensure the Philippines stays on track with its medium- to long-term goals outlined in the Philippine Development Plan 2023-2028
PHILIPPINES ECONOMY GROWTH INFLATION INTEREST RATES CONSUMPTION CREATE MORE NATIONAL BUDGET JOBS
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