PHL must boost productivity, diversify growth drivers as trade shifts pose risks

THE PHILIPPINES must improve labor conditions and infrastructure, attract more investments, and diversify its growth drivers as global uncertainties due to trade war concerns threaten the economic landscape.

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"The Philippine economy today stands at a crossroads. We find ourselves at this juncture, and significantly, when various developments and trends affect all economies, large and small... We live in a time of profound transformation, where influential megatrends disrupt the global landscape, posing risks but presenting opportunities to economies such as the Philippines. These forces are interconnected, complex, and dynamic, pushing nations to adapt, innovate, and position themselves strategically," Department of Economy, Planning, and Development Secretary Arsenio M. Balisacan said in his keynote speech at the Business World Economic Forum 2025 on Thursday.

Planning, and Development Secretary Arsenio M. Balisacan said in his keynote speech at the BusinessWorld Economic Forum 2025 on Thursday.

"Sustaining economic progress and reaching higher potential growth requires broadening the foundations of our economy beyond our traditional reliance on consumption and services. This requires attracting more investments, generating higher-quality and better-paying jobs — particularly in manufacturing and higher-value-added services — and expanding into new markets."

Mr. Balisacan said heightened uncertainty due to the Trump administration's trade policies, and rising protectionism among economic giants threaten the global economic landscape.

"Such uncertainty creates significant planning challenges for businesses and investors, who may now be more inclined to adopt a 'wait-and-see' position for the foreseeable future."

Still, despite global headwinds, the Philippines' strong growth momentum and reforms have bolstered investor confidence, he said, citing development gains in areas including incomes, jobs, and poverty reduction, as well as sound macroeconomic fundamentals, the official said.