Philippines Seeks to Accelerate Economic Growth to 6.8 Percent by 2040

Strategic Insights -

The Philippines has witnessed impressive growth over the past 15 years, with a significant increase in jobs and a record low unemployment rate. According to the World Bank's Country Growth and Jobs Report, structural reforms are necessary to accelerate economic growth and transform the country into a middle-class society by 2040. The report highlights the need for sustained annual growth of 6 to 10 percent for decades and proposes various reforms to boost job creation and growth.

Key Takeaways:

  • The Philippines has posted rapid growth, doubling its gross domestic product (GDP) since 2010, with 11.7 million jobs created and a record low 3.8 percent unemployment rate in 2024.
  • To achieve its goal of becoming a middle-class society, the World Bank recommends sustaining annual growth of 6 to 10 percent for decades, with a focus on connectivity infrastructure, private climate adaptation, and human capital development.
  • Implementing the proposed reforms would increase annual real GDP growth by 1.4 percentage points, reaching an average of 6.8 percent annual growth rate over 2025 to 2040, creating over 5.1 million additional jobs by 2040 and raising real wages by 12.9 percent.
  • The Philippines has demonstrated that investment-led growth can be inclusive, but to secure a prosperous, job-rich future, the country must implement reforms that unlock productivity, empower regions, and connect to global markets.
  • The government has vowed to create an enabling environment for business by strengthening institutions and governance and shaping regulatory frameworks that facilitate the mobilization of resources to meet pressing development challenges.

Statistics:

  • GDP growth: 6 to 10 percent per annum for decades
  • Number of jobs created: 11.7 million
  • Unemployment rate: 3.8 percent in 2024
  • Projected additional jobs by 2040: 5.1 million
  • Projected real wage increase: 12.9 percent
  • Annual real GDP growth increase: 1.4 percentage points

Sources:

  • World Bank's Country Growth and Jobs Report
  • Philippines News agency, July 15, 2025
  • World Bank Division Director for Philippines, Malaysia and Brunei, East Asia and the Pacific Zafer Mustafaoglu
  • Department of Economy, Planning, and Development Secretary Arsenio Balisacan