Transform PH

ROSEMARIE G. EDILLON
Undersecretary, Policy and Planning Group
1 September 2022
National Economic and Development Authority
 2020 - 2022
National Economic and Development Authority
Economic recovery is firming up as the Philippine economy
grew by 7.8% in the first semester of 2022.

FY 2020 FY 2021 S1 2022

growth: -9.5% growth: 5.7% growth: 7.8%

Source: PSA

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 Growth was broad based but some sectors remain
below pre-pandemic levels.

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Real GDP per capita also remains below the pre-pandemic
(2019) level.

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percent
Unemployment (6.0%) and underemployment (12.6%) rates improved in June 2022.

National Economic
Source: andSurvey,
Labor Force Development Authority
Philippine Statistics Authority 6
 Between 2015 and 2018, poverty declined significantly.
However, due to the pandemic, it slightly increased to 18.1% in 2021.

National Economic and Development Authority 7

 https://www.adb.org/sites/default/files/publication/688271/adbi-wp1226.pdf

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 Our vulnerabilities
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Key interactions of
SDG 3.3 Fighting communicable
diseases

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 Health Risk Factors
Possible Sources Philippines Thailand Vietnam Malaysia Indonesia Singapore
CVD death rate 370.44 109.86 245.46 260.94 342.86 92.24
(number per 100,000 pop,
2017)
Diabetes prevalence 7.07 7.04 6.00 16.74 6.32 10.99
(% of pop aged 20-79, 2017)
% Female smokers (2016) 7.8 1.9 1 1 2.9 5.2
% Male smokers (2016) 40.8 38.8 45.9 42.4 76.1 28.3

median_age (years) 25.2 40.1 32.6 29.9 29.3 42.4

Median age (2015) 24.1 37.8 30.4 27.7 28.0 40.0
% aged 65 years and older 4.80 11.37 7.15 6.293 5.32 12.92

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 Density and other factors
Possible Sources Philippines Thailand Vietnam Malaysia Indonesia Singapore
Population (projected, 109,581,085 69,799,978 97,338,583 32,365,998 273,523,620 5,850,342
2020)
Population density 351.87 135.13 308.13 96.25 145.73 7915.73
(number of people
/square kilometer)
GDP per capita (in 7,599.19 16,277.67 6,171.88 26,808.16 11,188.74 85,535.38
constant 2011 Intl $)
Handwashing facilities 78.46 90.67 85.85 *** 64.20 ***
(% with basic
handwashing facilities
in premises)

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Public Health Expenditure in ASEAN
PH has the lowest PHE per capita among neighboring countries

Source:
National Economic and World Bank,
Development 2000-2018
Authority
National Economic and Development Authority https://ourworldindata.org/financing-healthcare
15
Income risks faced by Filipinos
Majority of Filipinos cannot recover While our economy is gradually
from big unexpected expenses and are In 2020, the pandemic surfaced gaps in the country's recovering, many are still feeling
worried about having a secured source social protection system revealing the vulnerability of the brunt of the pandemic.
of income. many Filipinos to income shocks.

Cannot recover from big

2.2 CONSUMER
million
)
DOLE Data
(
unexpected expenses SURVEY
2 out of 3 As of 21 April (WRAO,
2020)
2020
families
displaced workers (WRAO,
2020)
40% 8.1% 307,958
Claimed that their family income
unemployment displaced worker
Cannot recover from small
unexpected expenses 60% declined. Of which 70% are due to loss
of source of livelihood rate
1 out of 10 (44,000
Out of
) ( PSA August
2021
) ( As of Sept
2021 )
families enterprises stopped 60% DOLE BLE
operations
(WRAO, 2020) Coping mechanism:
Reduced consumption
Feel insecure about their
income stability 17.7%
2 out of 3
April 2020 Unemployment
13% ( World Bank,
37% November 2020)
workers rate (PSA, 2020) Coping mechanism:
Borrowed from relatives Temporarily/ permanently
National Economic and Development Authority and friends closed firms
National Economic and Development Authority
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 Lessons Learned

• Everything is INTERCONNECTED
• We need to invest in
− Early warning systems
− Social protection
− Resilience-building
− R&D and innovation
− Technology
• There are limits to fiscal policy; governance is more
important than government

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 The 8-point agenda
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 The 8-Point Socioeconomic Agenda of the Marcos
Administration focuses on both near-term issues…
1. Protect purchasing power of families 3. Ensure sound
macroeconomic
fundamentals and
government
processes
Ensure food security Reduce transport and Reduce energy cost to
logistics cost families Enhance
bureaucratic
efficiency and sound
2. Reduce vulnerability and mitigate scarring from the fiscal management
COVID-19 pandemic

Ensure a resilient and

innovative financial
Ensure capacity of
Address Strengthen social sector
healthcare in case of
surges learning losses protection
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 …and medium-term constraints to economic
transformation.
4. Create more jobs 5. Create quality jobs

Ensure Enhance the

Promote Improve energy Increase Advance R&D and digital
investments infrastructure security employability innovation economy

6. Create green jobs 7. Ensure a level

8. Uphold public order and
Pursue a green and playing field
safety, peace and security
blue economy

Establish livable and

sustainable communities
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PDP 2023-2028 Strategy Framework
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 PDP 2023-2028: A Plan for Economic Transformation

• The overall goal is to reinvigorate job creation and poverty

reduction by steering the economy back on the high-growth
path and more importantly, effect economic transformation for a
prosperous, inclusive, and resilient society.

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 What remains the same

• Whole-of government
• Whole- of-society

What changed
• Outcome-focused, but issue-driven
• Forward-looking, but relevant even to the present
• Value chain mindset

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 Economic Transformation

• Economic Sector, Institutions, Social Sector, Environment

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 MATATAG, MAGINHAWA AT PANATAG NA BUHAY

ECONOMIC TRANSFORMATION FOR A PROSPEROUS, INCLUSIVE, AND RESILIENT SOCIETY

TRANSFORM PRODUCTION SECTORS

DEVELOP AND PROTECT CAPABILITIES OF INDIVIDUALS AND FAMILIES TO GENERATE MORE QUALITY JOBS AND COMPETITIVE PRODUCTS

PROMOTE HUMAN PROTECT MODERNIZE

CAPITAL AND SOCIAL
INCREASE INCOME REVITALIZE REINVIGORATE
PURCHASING AGRICULTURE AND
DEVELOPMENT EARNING ABILITY AGRI-BUSINESS INDUSTRY SERVICES
POWER

IMPROVE EDUCATION EXPAND TRAINING ENSURE FOOD PROMOTE TRADE AND INVESTMENTS
AND LIFELONG AND SKILLS SECURITY
LEARNING DEVELOPMENT
ADVANCE R&D, TECHNOLOGY, AND INNOVATION
RATIONALIZE
BOOST HEALTH INTENSIFY SOCIAL
AND NUTRITION EMPLOYMENT PROTECTION ENHANCE INTER-INDUSTRY LINKAGES
FACILITATION
ESTABLISH
LIVABLE
COMMUNITIES

PRACTICE GOOD GOVERNANCE ENSURE MACROECONOMIC STABILITY PROMOTE COMPETITION

AND IMPROVE BUREAUCRATIC EFFICIENCY AND REGULATORY EFFICIENCY

ACCELERATE CLIMATE ACTION AND

ATTAIN PEACE AND SECURITY EXPAND AND UPGRADE INFRASTRUCTURE STRENGTHEN DISASTER RESILIENCE

National Economic and Development Authority Preliminary Framework as of August 31, 2022
 Thank you.
National Economic and Development Authority