After 15 years of strong growth and record job creation, the Philippines is on the cusp of a historic transformation—but the World Bank says the country must double down on structural reforms if it hopes to sustain momentum and become a fully middle-class society by 2040.
In its latest Country Growth and Jobs Report, the World Bank praised the Philippines for doubling its gross domestic product (GDP) since 2010 and creating 11.7 million jobs, leading to a historic low 3.8% unemployment rate in 2024.
“Job creation has been at the heart of the Philippines’ remarkable growth journey,” said Zafer Mustafaoglu, World Bank Director for the Philippines, Malaysia, and Brunei, during the report’s launch at the Makati Shangri-La. “The country stands at the threshold of upper-middle-income status. Now is the time to ensure this progress is shared across all levels of society—especially the poor and most vulnerable. Jobs are central to achieving that.”
Roadmap to inclusive growth
To realize its ambition of becoming a middle-class society within the next 15 years, the Philippines must sustain an annual growth rate between 6% and 10%—a tall but achievable order if critical reforms are implemented now.
The World Bank outlined a wide-ranging reform agenda to unlock higher growth and ensure it translates into better lives for more Filipinos:
Invest in Infrastructure: Prioritize public investment, particularly in transportation and digital infrastructure, to improve connectivity across the country.
Support Human Capital: Expand science, technology, engineering, and math (STEM) programs, fast-track implementation of enterprise-based education and training, and boost digital skills to prepare the workforce for the rise of AI.
Modernize Regulations: Streamline regulatory frameworks to better match rapid infrastructure growth, ensuring investments deliver maximum impact.
Empower Women and Farmers: Improve part-time work systems to encourage female labor participation and facilitate land consolidation for more efficient agriculture.
Open Markets and Drive Competition: Remove barriers to market entry, enhance trade agreements that spur local reforms, and enforce pro-competition policies in sectors like energy, telecoms, and logistics to lower business costs.
Fuel Innovation and Scale Up SMEs: Introduce supplier development programs, support venture capital development, and connect small and medium enterprises (SMEs) to larger firms to scale innovation.
World Bank Lead Economist Gonzalo Varela said implementing the full slate of reforms could raise average GDP growth to 6.8% between 2025 and 2040. It could also generate an additional 5.1 million jobs and boost real wages by nearly 13%, especially in the manufacturing and services sectors.
Government pledges action
Economic Planning Secretary Arsenio Balisacan affirmed the government’s commitment to these goals, pledging to reinforce institutions, improve governance, and focus spending on high-impact programs.
“To meet today’s development challenges, we must create an environment where business thrives and resources flow efficiently,” Balisacan said in a recorded message. “That means investing smartly—in education, healthcare, food security, and digital connectivity—to ensure every peso spent produces real, measurable benefits for the Filipino people.”
He added that fiscal responsibility would remain a top priority: “We will continue to support only the most strategic programs—those with a proven track record of success.”
The path ahead
The World Bank’s message is clear: The Philippines has built a solid foundation for growth. But to leap into a future of shared prosperity, it must act boldly, sustain reforms, and unlock the full potential of its people.
“The next leap is within reach,” said Varela. “It’s time to connect regions, boost productivity, and deepen the country’s integration into global markets. The choices made today will shape the nation’s tomorrow.”