PH To Become USD2 Trillion Economy By 2050 – DEPDev

The Philippines is on track to become a USD2 trillion economy by 2050, according to Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio M. Balisacan.

Officials are highlighting several key strengths of the Philippine economy: a USD392 billion economy, a rising middle-income status, a population of 114 million, and a youthful median age of 27. I Photo: Department of Economy, Planning, and Development Facebook

The optimistic forecast was delivered during the inaugural Philippine Economic Dialogue (PED) held in Milan, Italy, on May 6, 2025, alongside the 58th Annual Meeting of the Asian Development Bank (ADB).

The event was attended by European business leaders, financial stakeholders, potential investors, and ADB delegates.

It was co-organized by the Bangko Sentral ng Pilipinas (BSP) and the Department of Finance (DOF), with support from the ADB, the Philippine Embassy in Italy, the Philippine Consulate General in Milan, the Philippine Trade and Investment Center, and the Italian Chamber of Commerce in the Philippines.

“At our current growth trajectory—and barring significant external shocks—we anticipate reaching a USD2 trillion economy by 2050,” Balisacan said at the event.

Key Highlights

In his presentation titled “The Philippine Economy: Growth, Reform, Opportunity,” Balisacan emphasized the country’s robust economic fundamentals, investor-friendly policies, and long-term development vision.

He cited several key strengths: a USD392 billion economy, a rising middle-income status, a population of 114 million, and a youthful median age of 27.

Balisacan said economic transformation will be driven by the development of new growth drivers, strengthened existing sectors, increased private sector participation in infrastructure, and impact-driven investments.

He also pointed to improvements in governance, particularly in Public-Private Partnership (PPP) projects, which have boosted transparency and investor confidence.

Major policy reforms cited include the Philippines-Korea Free Trade Agreement, the Ease of Paying Taxes Act, the CREATE MORE Act, and the establishment of green lanes for strategic investments.

These, along with infrastructure acceleration measures, are expected to reduce the cost of doing business.

Balisacan invited investors to explore opportunities within the Luzon Economic Corridor — a strategic initiative aimed at enhancing trade and investment. “The Luzon Economic Corridor connects Subic, Clark, Manila, and Batangas through coordinated investments in logistics, energy, and infrastructure,” he said.

“It supports key sectors such as agribusiness, semiconductors, manufacturing, and finance — serving as a launchpad into Asian and global markets.”

Emphasis on Strength and Sustainability

During the PED panel discussion, Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman discussed the government’s focus on infrastructure and climate resilience.

She reported that climate change-related expenditures saw a 152.7% increase over the previous year — the highest since 2015 — now comprising 18.3% of the FY 2025 National Budget, well exceeding the PDP 2023–2028 target of 9%.

Pangandaman noted that infrastructure remains a top priority, with Php1.645 trillion allocated under the Build-Better-More Infrastructure Program, equivalent to 5.7% of GDP. Major allocations include:

• Road networks: Php624.8 billion

• Flood control systems: Php350.5 billion

• Railways: Php17.93 billion

• Airports: Php7.70 billion

• Irrigation systems: Php56.42 billion

• School buildings: Php37.09 billion

• Hospitals and health centers: Php19.43 billion

She also highlighted the New Government Procurement Act as a landmark anti-corruption reform.

“A major new component of the law is digitalization,” Pangandaman explained. “One section provides for an e-marketplace, similar to Amazon, where agencies and LGUs can order what they need, and we deliver.”

The e-marketplace has already been used to procure motor vehicles, airline tickets, cloud computing services, and software licenses, and will expand its offerings further.

Fiscal Stability and Monetary Flexibility

DOF Undersecretary Domini S. Velasquez highlighted the country’s stable fiscal foundations, including manageable debt-to-GDP and deficit-to-GDP ratios, and the strategic use of PPPs to finance infrastructure.

BSP Assistant Governor Zeno R. Abenoja emphasized the central bank’s success in managing inflation, which has allowed for an accommodative monetary policy to support continued investment and consumption.

Other key Philippine officials present at PED included DBM Chief Economist Dr. Joselito R. Basilio, DA Undersecretary Asis G. Perez, and National Treasurer Sharon P. Almanza. ADB Deputy Director General for Southeast Asia Pavit Ramachandran also participated in the dialogue.

"Protagonist of the Century"

Italy’s Lombardy Region Undersecretary for International and European Relations Raffaele Cattaneo called the Philippines the "protagonist of the century." “You have all the conditions to be one of the fastest-growing economies in Asia, with a large and young population,” Cattaneo said.

Italian banks and firms echoed this sentiment, recognizing the Philippines as an attractive destination for international investment due to its sustained growth and resilience.

Philippine Ambassador to Italy Nathaniel G. Imperial added, “The Philippines is more than ready to do business with Italy and Europe,” noting the country’s recovery from the pandemic, regulatory reforms, increased infrastructure spending, and preferential access to regional markets.

He highlighted ongoing efforts by the Embassy and Consulate General in Milan, along with the trade office in Paris, to support Philippine participation in European trade fairs and expositions, promoting exports in agriculture, manufacturing, and creative industries.

A Prime Investment Destination

The PED successfully showcased the Philippines as a prime investment destination, driven by reforms and strategic policy initiatives.

ADB Director General Winfried F. Wicklein remarked in his closing statement, “The Philippines is a very important and increasingly thriving member of ASEAN. There has never been a more exciting time to invest in the Philippines.”

Balisacan concluded, “Strong macroeconomic fundamentals, reform momentum, a skilled and young workforce, and a strategic location position the Philippines as your ideal partner of choice in Asia and globally. The right time is now. The right place is the Philippines."