Transcript
The Philippines has been one of the world’s fastest growing economies in the past 15 years.
Since 2010 output has more than doubled and poverty has more than halved.
GDP growth is projected at 5.1% in 2026 and 5.8% in 2027.
Fiscal consolidation would bring down public debt and prepare for future spending pressures.
To lower public debt:
- Reduce value-added tax exemptions for private healthcare, education and senior citizens
- Reform corporate tax incentives
- Ensure rigorous planning, monitoring and evaluation of infrastructure project
Strengthening competition would boost productivity and further raise living standards.
To strengthen competition:
- Require companies that generate electricity to divest from distribution
- Enhance access to telecommunications networks
- Simplify administrative processes, especially for foreign investment
- Continue to reduce corruption
About two-thirds of the Philippines’ workers are informal, with limited social protection.
To strengthen formal employment:
- Create a multi-tiered social protection system with tax-funded basic universal benefits
- Complement this with a more generous benefit tier funded by social contributions
- Refine hiring and dismissal laws
The Philippines faces growing risks from extreme weather, requiring both climate mitigation and adaptation policies.
To address climate change:
Invest in resilient infrastructure and early warning systems, especially in flood-prone, low-income areas
- Improve land-use planning
- Reform water pricing to address excessive groundwater extraction
- Increase the coal excise tax to phase out coal-fired power plants
- Implement the Emission Trading System currently under review
To learn more, read the 2026 OECD Economic Survey of the Philippines at oe.cd/philippines.