In its yearstarter economic and political briefing, research group IBON said that there is a serious disconnect between the worsening conditions of Filipinos and the Marcos Jr administration’s claims of steady economic growth and a robust labor market. The group noted a similar gap between the rising profits of local and foreign businesses and the national development expected from their investments.
IBON executive director Sonny Africa criticized the administration’s use of economic indicators as deceptive, stating “If the economy is so steady and employment so robust, why are more Filipinos unable to afford what they need and falling into poverty?”
For instance, gross domestic product (GDP) – touted by the government as among the fastest in the region – grew to 5.8% in the first three quarters of 2024, up from 5.6% in 2023. The unemployment rate reportedly dropped from 3.6% in November 2023 to 3.2% in November 2024, which is the third lowest monthly unemployment rate on record. Yet, the number of Filipinos considering themselves poor rose to 17.4 million or 6-out-of-10 families, and those experiencing hunger grew to 7.2 million, according to the latest Social Weather Stations (SWS) survey.
Africa also noted that while local and foreign big businesses are profiting from their investments in the country, the development promised by the government has not materialized. The net income of the Philippine Stock Exchange’s (PSE) 284 listed firms rose by 6.6% to Php947.3 billion in the first nine months of 2024 from the same period the year before. The combined wealth of the three richest Filipinos — Enrique Razon Jr, Manuel Villar, and Ramon Ang — increased by 25% to Php1.5 trillion in 2024, or Php294 billion more than in 2023.
Yet, the production sectors so crucial for economic development and sustainable job creation are at historic lows. Agriculture’s share of GDP fell to 7.8% in the first three quarters of 2024 – the smallest in history. Manufacturing dropped to 17.3%, the smallest share since 1949 (16.3%). This has resulted in economic productivity stagnating for nearly five years. The average of annual productivity over the 2020-2023 period is over 6% lower than in 2019 (measured as GDP divided by total employment). This indicates how greater economic output has been accompanied by less to go around.
IBON stressed that these disconnects expose the Marcos Jr administration’s big business-biased and exclusive governance that benefits a few and undermines the people’s well-being and country’s development. This underscores the urgent need for real alternatives, such as national industrialization, to effectively address these issues. This begins with having leaders in the government who will develop a comprehensive, people-centered economic plan prioritizing domestic agriculture and Filipino industries.
