DEPDev reports steady growth, reforms in 2025 year-end briefing

The Philippine economy maintained stable growth in 2025 despite global headwinds, climate-related disruptions, and ongoing governance issues, according to a year-end briefing delivered on Monday, Dec. 1 by Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio M. Balisacan.

Speaking at the DEPDev Central Office in Mandaluyong City, Balisacan highlighted the nation’s economic resilience, structural reforms, and renewed efforts in transparency and accountability.

“Only by keeping our growth momentum through steady and sound economic policies and steadfast commitment to uplift the lives of ordinary Filipinos can we earn and maintain our people’s trust in government,” Balisacan said.

Economic fundamentals remain strong

The economy grew by an average of 5.0 percent over the first three quarters of 2025. Inflation eased to 1.7 percent, staying within the government’s 2–4 percent target range, attributed in part to policy measures that stabilized rice and commodity prices.

Labor conditions remained robust, with unemployment averaging 4.5 percent and underemployment at 14.2 percent. The fiscal deficit narrowed to 5.0 percent of GDP. The Philippine peso remained stable, supported by remittances and prudent monetary policy, while the banking sector remained healthy.

“These solid fundamentals prove their value during times of uncertainty because they provide critical buffers,” Balisacan said.

Key accomplishments and policy updates

This year marked a milestone with the elevation of DEPDev to a full Cabinet department. Its core outputs included the Philippine Development Plan (PDP) 2023–2028 Midterm Update and the launch of the Trabaho Para sa Bayan Plan 2025–2034, aimed at workforce development and employment quality.

On food security, the administration enacted Executive Order Nos. 93 and 102 to suspend rice imports during peak harvest, while Executive Order No. 105 introduced a trigger-based tariff mechanism effective January 2026.

Infrastructure investment remained a cornerstone of policy, with the Economy and Development Council, chaired by President Ferdinand R. Marcos Jr., approving major projects under multiple development categories.

Water and food security, agriculture

Metro Manila water concession extension to 2047, projected to generate PHP 50.3 billion (USD 901.6 million) in additional revenue.

Tumauini River Multipurpose Project (PHP 13.9 billion; USD 248.9 million) to irrigate 8,200 hectares in Isabela province.

Farm-to-Market Bridges Development Program (PHP 27.7 billion; USD 496 million) to build 300 climate-resilient bridges in 52 provinces.

Liloan Bridge Project (PHP 5.1 billion; USD 91.3 million) to enhance inter-island connectivity in the Visayas.

Human capital and social protection

Project for Learning Upgrade Support and Decentralization (PLUS-D) (PHP 38.27 billion; USD 685 million) to improve nationwide literacy and numeracy.

Accelerated Water and Sanitation Project in Selected Areas (AWSPSA) (PHP 14.98 billion; USD 268.5 million) for clean water access.

Panahon ng Pagkilos Project (PHP 56.7 billion; USD 1.01 billion) for participatory resilience planning covering 4.13 million households.

Innovation, int’l partnerships,

The Philippines rose to 50th in the Global Innovation Index and institutionalized the Presidential Filipinnovation Awards to boost cross-sector collaboration, technology adoption, and productivity.

In October, the government hosted the Philippine Development Forum to align policy and financing across human capital, agriculture, infrastructure, and governance. Additionally, the Philippines assumed co-chairmanship of the OECD Southeast Asia Regional Programme (2025–2028) alongside Canada, marking a regional leadership milestone.

Under the Regional-National Investment Programming (RNIP) Dialogue:

The Updated Public Investment Program 2023–2028 included 5,538 priority projects worth PHP 19.7 trillion (USD 353.2 billion), with PHP 13.8 trillion (USD 247.3 billion) for infrastructure.

All 18 regions posted growth in 2024, led by Central Visayas (7.3 percent), Caraga (6.9 percent), and Central Luzon (6.5 percent).

Monitoring reforms, transparency

To address governance concerns, DEPDev initiated the Rapid On-Site Verification Report (ROVeR) in August to evaluate flood control projects. By Nov. 30, Regional Project Monitoring Committees had verified 9,290 of 9,855 listed projects, with reports submitted to the Office of the President for review.

“Investor confidence is anchored in sound governance,” Balisacan emphasized.

The 19th Congress passed 40 priority measures—its highest since the 10th Congress—including the PPP Code, Konektadong Pinoy Act, ARROW Act, and fiscal modernization laws. For the 20th Congress, the Legislative-Executive Development Advisory Council (LEDAC) adopted 44 additional priority bills focusing on structural reform, digital cybersecurity, budgeting, and access to information.

Outlook for 2026

DEPDev is preparing an Executive Report to guide national policy through 2026, with economic scenarios and recommendations to safeguard growth and bolster institutions.

“With strong macroeconomic fundamentals, coupled with structural reforms underway, we are laying the groundwork for an economy where investments flourish, and progress is felt by all Filipinos,” Balisacan said.

“Trust is not just an outcome of development; it is a precondition for it.”

He closed the briefing by reaffirming the administration’s commitment to transparency, inclusion, and tangible results as the country prepares for the coming year.