Government updates development plan to sustain economic gains

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August 17, 2025 | 12:00am

MANILA, Philippines — The government has updated its development plan with recalibrated targets on growth and average income per person as it aims to sustain gains and achieve inclusive economic growth.

In a statement, the Department of Economy, Planning and Development (DEPDev) said the Midterm Update of the Philippine Development Plan (PDP) 2023 to 2028 builds on the country’s hard-earned gains and aims to enhance the economy’s ability to navigate trends and emerging domestic and global challenges.

The updated PDP contains recalibrated targets to reflect changing conditions, along with strategies to guide the Marcos administration in the second half of its term.

Under the updated PDP, the government is aiming for 5.5 to 6.5 percent economic growth for this year and six to seven percent growth annually from 2026 to 2028.

The PDP initially set a 6.5 to eight percent gross domestic product (GDP) growth target until 2028.

As of the first semester, the economy grew by 5.4 percent.

As part of the updated PDP, the government is aiming for gross national income (GNI) per capita to reach $4,814 to $4,920 this year, $5,124 to $5,210 for 2026, $5,452 to $5,589 in 2027 and $5,882 to $6,081 in 2028.

Data released by the World Bank showed that the Philippines remained part of the lower-middle income country grouping, with its GNI per capita at $4,470 in 2024.

“Before the end of President Marcos’ administration in 2028, the Philippines will sustain rapid economic growth and attain upper-middle income status — a milestone that reflects the nation’s resilience, determination and sustained commitment to inclusive growth,” the updated PDP stated.

Under the updated PDP, the government also set a deficit-to-GDP ratio target of 5.5 percent for this year. The goal is to reduce this to 5.3 percent in 2026, 4.8 percent in 2027 and 4.3 percent in 2028.

The government is also aiming for a debt-to-GDP ratio of 56 to 59 percent for this year, 60 to 63 percent next year, 59 to 62 percent in 2027 and 58 to 61 percent in 2028.

The updated development blueprint also refines the administration’s strategies as it aims to boost productivity, accelerate innovation and human capital development, generate high-quality jobs and promote infrastructure development in support of the country’s long-term vision, the AmBisyon Natin 2040, of the Philippines becoming a prosperous, middle-class society where no one is poor.

To ensure that the updated plan responds to both global changes and local realities, DEPDev Secretary Arsenio Balisacan said consultations were conducted to integrate insights from national agencies, local governments, civil society organizations, business leaders and international development partners.

“The updated plan reflects how we are adapting to emerging challenges while remaining committed to our long-term development goals. It highlights our progress so far and charts a clear path forward toward a prosperous, inclusive and resilient Philippines,” Balisacan said.

In line with President Marcos’ directives during his State of the Nation Address in July, the updated PDP is focused on actions and reforms to strengthen education and health care systems, promote agriculture and food security, as well as accelerate physical and digital connectivity.

“As we move forward, we must ensure that our institutions are agile, our policies evidence-based and our progress truly inclusive. The next three years will focus on deepening reforms and embedding resilience across our systems — from education and health care to infrastructure and innovation,” Balisacan said.

“Improvements in the numbers mean little if these do not translate into meaningful changes in people’s lives,” Balisacan added.