Philippines in the UN: Aren’t we ‘financially unhealthy?’

“An economic system which can only expand or expire must be false to all that is human.” — Edward Abbey, Desert Solitaire

IF the Philippines is deemed “financially unhealthy” by economic analysts, why was it chosen to launch the UN Group of Friends (GoF) for Financial Health together with Peru and Kenya during the ministerial luncheon on the sidelines of the High-Level Week of the 81st session of the UN General Assembly (UNGA81) in New York City on September 22?

The launch of the Philippines’ UN team-up with Peru and Kenya came a day after the South China Morning Post reported that the Philippines’ rise to upper-middle-income status “has done little to shield the country from short-term pressures weighing on growth: sluggish public spending, delayed infrastructure, high living costs and the fallout from investigations into alleged irregularities in flood control projects.”

Those strains have left the Philippines looking like a regional laggard, reported the South China Morning Post.

“Bank of America is forecasting gross domestic product growth of 2.5 per cent for 2026 – tying with Thailand for the slowest pace in the region – even as it raised its overall Asean growth forecast to 5 per cent, up from 4.7 per cent at the end of the second quarter,” it added.

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Quoting Bank of America’s September report, the paper said, “The Philippines is expected to see a sharp slowdown relative to 2025.” The bank reportedly compared that to Singapore’s projected 5.1 per cent growth, Malaysia’s 5.2 per cent, Indonesia’s 5.3 per cent and Vietnam’s 8.2 per cent, according to the paper.

As other members of the Association of Southeast Asian Nations surge ahead, the paper stressed, “the growing growth disparity raises serious questions about whether Manila can convert its long-term strengths – a young population, a robust consumer base and an expanding services sector – into the growth momentum seen elsewhere in the region.”

It added: “Modest consumption gains and a bottoming-out of investment spending could support limited growth in the second half of the year, Bank of America said, while targeted subsidies for vulnerable consumers and the transport sector could cushion the impact of energy shocks.”

Quoting Filipino economist and market strategist Jonathan Ravelas, the paper said, “Compared with its Asean peers, the Philippines is currently facing a relative slowdown.”

“Countries such as Vietnam, Indonesia and Malaysia are benefiting more from manufacturing expansion, supply-chain relocation and stronger foreign direct investment inflows.”

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The Philippine economy had been “heavily dependent on consumption and that engine has been tempered by higher borrowing costs, elevated living costs and slower public spending,” Ravelas told the paper.

During the UN meeting, Department of Foreign Affairs (DFA) Secretary Ma. Theresa P. Lazaro met with Her Majesty Queen Maxima of the Royal House of the Netherlands, who had a working lunch with the Group of Friends for Financial Health, an informal partnership of countries co-chaired by Kenya and the Philippines that works to promote financial health.

According to the DFA, the GoF will bring together member states that have shown strong leadership on financial health, which refers to the extent to which households can manage their day-to-day finances, withstand financial shocks, and build long-term financial security and confidence.

During the launch, the DFA website reported that Lazaro shared that advancing financial health is a priority for the Philippine government and emphasized that financially healthy households are a foundation for stronger and more resilient economies.

Lazaro said: “The Group speaks to a simple but important idea: that inclusive growth and national resilience must ultimately translate into resilience in people’s everyday lives.”

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The launch of the GoF also provided an initial opportunity for the co-chairs and prospective members to exchange national experiences and approaches to strengthening households’ financial health and resilience, the DFA website added.

The GoF will work closely with the Office of the UN Secretary-General’s Special Advocate for Financial Health (SGSA GoF), Her Majesty Queen Maxima of the Netherlands, in promoting greater awareness and understanding of financial health and advancing the concept within relevant UN and intergovernmental processes.

Queen Maxima had earlier presented her annual UNSGSA report to UN Secretary-General Antonio Guterres and held bilateral meetings with government representatives and various organizations in her capacity as the UN Secretary-General’s Special Advocate for Financial Health (UNSGSA).

The theme for the 81st session of the United Nations General Assembly (UNGA 2026) is “Restoring trust, managing transformation: a United Nations that delivers for all.”

(The author, who is now based in New York City, used to be the editor-in-chief of two leading daily newspapers in Iloilo, Philippines. — Ed.)