THE Department of Finance (DOF) expressed confidence that the Philippines will become an “upper middle-income country” by 2025.
In a media forum, DOF Undersecretary Domini Velasquez said carrying eight million Filipinos out of the poverty line is doable considering the country’s current strong economic performance.
“’Yung poverty rate na nilalabas ng PSA (Philippine Statistics Authority) mababa… bumaba din. Actually, medyo mataas pa rin, 15.5 percent ‘pag titingnan iyong individuals. But iyong importante dito, we’re on track,” she said.
“Hopefully sa end ng President Marcos administration, below 10 percent at single digit na siya. So, we’re on track actually to bring down poverty to single digit,” she added.
The agency’s chief economist cited the country’s second-quarter gross domestic product (GDP) growth, with the Philippine economy expanding by 6.3 percent from the first quarter’s 5.8 percent.
The investments and construction recorded increases as the government aggressively funds big-ticket infrastructure projects to push the Build Better More program.
Vasquez said they are also expecting aggressive spending of Filipino consumers in the coming months with consideration also to the good employment figures and remittances from Overseas Filipino Workers (OFWs).
The country’s unemployment rate went down at 3.1 percent compared to the pre-pandemic record of around 5.1 percent.
“So, actually, mas maganda iyong employment – mas madaming mga taong nagkakatrabaho; underemployment although medyo above… around 12 percent pa rin pero medyo mas mababa din compared doon sa pandemic,” Velasquez said.
“Tapos iyong isang importante dito is iyong… sa mga nagtatrabaho, sino iyong wage and salary workers, iyong nakakakuha ng income kada buwan. So, mataas din iyong share noon kaya okay din iyon,” she added.
In July, the National Economic and Development Authority (NEDA) reported that despite experiencing domestic and external challenges, the Philippines has made remarkable strides in reducing poverty levels between 2021 and 2023, marking significant progress toward the government’s ambitious target of reducing poverty incidence to a single-digit level by 2028.
The PSA released last month the 2023 Full Year Official Poverty Statistics, showing that poverty incidence among the population significantly dropped to 15.5 percent from 18.1 percent in 2021.
President Ferdinand “Bongbong” Marcos Jr. in a message on Saturday, August 17, assured that every Filipino will benefit from the economic growth of the country.
He said the country’s highest rating to date manifests high investor confidence in the Philippine economy, noting it’s also an upgrade on the lives of ordinary Filipinos.
The chief executive said the latest upgrade would cut borrowing costs and secure cheap and affordable financing for the government, businesses, and ordinary consumers.
This means instead of paying interest, the government could spend on public services like infrastructure, healthcare facilities, and the construction of school buildings for young Filipinos.
“Ang patuloy na pagpapabuti ng ating credit rating ay maghahatid ng mas maraming investments at dagdag na negosyo sa ating bansa na magdadala ng maraming kalidad na trabaho at mas mataas na kita para sa bawat Pilipino,” he said.
“Bagama’t ito ang kauna-unahang credit rating upgrade ng aking administrasyon, hindi po tayo hihinto rito. We will keep giving our best to make sure that every Filipino benefits from economic growth until we break the cycle of poverty,” he added. (TPM/SunStar Philippines)
