Secretary Arsenio Balisacan of the Department of Economy, Planning, and Development.

Secretary Kim Robert De Leon of the Department of Budget and Management.

I would also like to recognize Secretary Frederick Go of the Department of Finance, who joins us through a recorded message.

Our partners from government, the private sector, civil society, and academe.

Representatives of the media.

Magandang Umaga sa Inyong Lahat (Good morning to all)!

Thank you for joining us today.

It is a pleasure to welcome you all. Today’s report comes at a pivotal moment in the Philippines’ development journey — a moment to recognize real progress, and to focus clearly on what it will take to move higher.

I am grateful to our partners in government, business, civil society, academe, the media, and the development community for being part of this conversation.

Let me begin with what deserves to be said first — and said clearly.

The Philippines is now an upper-middle-income country.

This achievement reflects decades of effort — by Filipino workers, entrepreneurs, reform-minded policymakers, and communities that kept the country moving forward through repeated shocks and uncertainty.

The World Bank has had the privilege of walking alongside the Philippines on that journey. And today, we take a moment to recognize how far this country has come.

Over the past 15 years, the Philippines has become one of the world’s fastest-growing economies. Since 2010, growth has been broadly pro-poor: 11.7 million jobs have been created, poverty has fallen to 15.5 percent in 2023, and inequality — as measured by the Gini coefficient — has dropped below the high-inequality threshold for the first time in four decades.

This progress has been tested by a global pandemic, by extreme weather, and by global uncertainty. Yet, the economy has proven its resilience.

The Philippines has earned this milestone.

But a milestone, by its nature, marks a point on the road. It is not the finish line. That is why we are here today.

Our theme today is Moving Up, Aiming Higher.

Moving up is the story of achievement. Aiming higher is the challenge — and the opportunity — before the country now.

The country is now navigating important headwinds. Growth has moderated. Investment has become more cautious. And many Filipino households — especially those with the least cushion — are under pressure from higher food, transport, and energy costs.

Uncertainty around infrastructure procurement has made investors more hesitant. At the same time, global energy price pressures linked to the current conflict in the Middle East have pushed up the cost of living.

But let me be clear: these are not insurmountable challenges. Good policy can address them. The Philippines has shown, time and again, that it has the institutions, capacity, and resolve to navigate difficult moments.

Our report identifies two broad areas where decisive action will make the difference.

First: protect the most vulnerable.

The government’s targeted cash transfer is a well-designed response to the energy price shock. But coverage matters. More Filipinos need to be reached — especially those just above the poverty line, with little buffer against rising food, transport, and electricity costs. Temporarily expanding the 4Ps social protection program to near-poor households would help provide that protection.

Inflation must also be managed carefully. Keeping prices under control is essential — but the policy path must also preserve the conditions for recovery, investment, and job creation.

Second: restore the economy to a stronger path of growth and job creation.

That requires restoring investor confidence.

Resolving uncertainty around infrastructure procurement — through clear, transparent, and consistently enforced standards — can help restart investment and put growth back on a higher trajectory.

Equally important is lowering the cost of doing business — in money, time, and predictability. This would send a strong signal to Filipino entrepreneurs and global investors alike: the Philippines is a dependable, competitive place to invest and grow.

Beyond these immediate steps, the Philippines Economic Update takes a longer-term view of one reform with transformative potential: electricity.

The Philippines faces some of the highest power prices in Southeast Asia. This affects competitiveness, weighs on manufacturing, and raises costs for Filipino families every day.

Yet the country also has some of the region’s richest renewable energy resources — and the policy framework is largely in place. What is needed now is faster execution: accelerated renewable energy deployment, stronger grid investment, and deeper power market reform.

Our analysis shows that getting this right could reduce electricity prices by nearly one-third, create more than 160,000 jobs, and lift hundreds of thousands of Filipinos out of poverty by 2030.

That is what aiming higher looks like.

The Philippines has moved up. The opportunity now is to move higher — with stronger investment, cheaper and cleaner energy, more resilient households, and growth that creates better jobs for more Filipinos.

Let me conclude by emphasizing the following — this is the moment to turn a national milestone into a platform for the next stage of development.

I look forward to the conversation ahead.

Maraming Salamat! (Thank you)!