DOF Undersecretary Domini S.D. Velasquez delivers her presentation “Global Shifts, Local Strength: Steering the Economy Through Uncertainty” during the CTB Annual Convention.
Department of Finance (DOF) Undersecretary Domini S.D. Velasquez hailed the vital role of thrift banks in empowering Filipino communities and driving economic resilience at the 2025 Annual Convention of the Chamber of Thrift Banks (CTB).
Speaking before an audience of industry leaders and policymakers, Velasquez called thrift banks “anchors of resilience” that carry the strength of the financial system deep into grassroots areas, helping sustain stability even in volatile times.
“Thrift banks aren’t just part of the system—they’re the beating heart of financial inclusion across the country,” Velasquez declared. “They open doors for individuals, families, and small businesses to grow even when the bigger picture looks uncertain.”
A strong economy despite global headwinds
Despite challenges from global trade tensions and rising uncertainty abroad, Velasquez painted an optimistic picture of the Philippine economy. She cited a solid 5.4% GDP growth in the first quarter of 2025, fueled by strong household consumption, rising public construction, and steady growth in services.
According to data from the Philippine Statistics Authority, services expanded by 6.3%, industry by 4.5%, and agriculture by 2.2%. Velasquez emphasized that the economy remains on track with the government’s development targets.
A young, growing workforce
One of the Philippines’ biggest strengths, Velasquez said, lies in its people. With a median age of just 25.3 and over 51 million workers in the labor force, the country is in what she called a “demographic sweet spot”—a strategic advantage expected to peak in 2035.
“This young and capable workforce is the fuel for our future growth,” she noted. “The opportunities are immense if we can harness their potential.”
Building a stronger fiscal future
Velasquez also detailed the government’s Medium-Term Fiscal Program, which aims to reduce the country’s debt-to-GDP ratio from 60.1% in 2023 to 56.3% by 2028 and bring down the fiscal deficit from 6.2% to 4.3%.
“Our fiscal house is being strengthened to support long-term growth,” she said. “This isn’t just about balancing the books—it’s about laying the groundwork for a more inclusive and resilient economy.”
Reforms driving revenue and efficiency
Key reforms, including the CREATE MORE Act and the Ease of Paying Taxes (EOPT) Act, are already delivering results. Velasquez reported that ₱90.13 billion in investments have been approved since CREATE MORE took effect, and the BIR’s Digital Transformation Roadmap is helping modernize tax collection.
The Bureau of Internal Revenue collected ₱2.2 billion in the first quarter from digital platform withholding taxes and ₱4 billion from the Run After Fake Transactions (RAFT) initiative. Non-tax revenues were also bolstered by five PPP airport projects approved in 2024, including NAIA and Puerto Princesa.
A call to action for thrift banks
Velasquez closed her speech with a rousing message to thrift banks: continue growing your impact.
“Resilience isn’t just a government project—it lives in every thrift bank branch, every small loan granted, every account opened,” she said. “Now is the time to scale that impact and bring financial empowerment to every corner of the country.”
With thrift banks at the forefront, she believes the Philippines is well-positioned to weather global headwinds and emerge stronger—one community at a time.