The Philippines must move beyond consumption-led growth and build a productivity-driven economy to fully unlock its potential, EastWest Bank chief executive Jerry Ngo said on Monday.
Speaking at the Economic Journalists Association of the Philippines (EJAP) forum, Ngo laid out a strategy that includes:
Raising capital formation to 30 percent of GDP; spurring agricultural growth by 2–3 percent annually; expanding manufacturing employment to a quarter of the labor force by 2030; and harnessing artificial intelligence to “turbo-charge” productivity, especially in services.
“We have room to cut rates further — inflation is manageable, the dollar is soft, and global trade realignments are lowering import costs,” Ngo said.
“This can support household spending, but ideally in ways that benefit local producers,” he said.
He called for urgent reforms in education to prepare the workforce for AI-driven industries, warning that without decisive action, the country could squander its “demographic dividend” — 64 percent of Filipinos are of working age, with a median age of 26, far younger than many Asian neighbors.
“The danger is not stagnation. The danger is the middle-income trap,” he said.
Ngo’s remarks supported the statements made by the Department of Economy, Planning and Development (DEPDev) Secretary Arsenio Balisacan in the same forum.
Balisacan for ‘transformative growth’
Balisacan urged “resilient and transformative” growth anchored on productivity, inclusivity, and a future-ready workforce.
The DEPDev secretary stressed the need to prepare workers for AI and robotics, attract strategic investments, boost productivity, and develop robust digital and energy infrastructure.
These goals, Balisacan said, are central to the Philippine Development Plan 2023–2028, which targets robust economic expansion, stronger macro fundamentals, fiscal discipline, quality jobs, and poverty reduction.
“Our mission is to ensure growth is diversified, productivity-driven, inclusive, and powered by a future-ready workforce,” Balisacan said.,
“Staying this course will demand bold reforms, strong investments, and unwavering focus,” he added.
