The Department of Economy, Planning and Development (DEPDev) expects the Philippine and Southeast Asian economies to sustain moderate growth in the coming years, even as geopolitical tensions continue to pose risks to global stability.
DEPDev Secretary Arsenio Balisacan said the regional outlook remains “challenging,” with growth projected to stay steady through 2027 amid concerns over energy security, inflation, and external shocks.
For the Philippines, the government is targeting gross domestic product (GDP) growth of five to six percent this year and 5.5 to 6.5 percent in 2027.
Balisacan said persistent geopolitical tensions are likely to weigh on economic performance, underscoring the need for stronger resilience among ASEAN economies.
“These uncertainties highlight the importance of resilience,” he said. “For ASEAN, this means staying vigilant, strengthening economic coordination, and ensuring that our systems are prepared to absorb external shocks.”
Despite these risks, Balisacan maintained a positive outlook for the region, citing strong domestic demand, expanding trade, and sustained investment flows as key drivers of growth.
“While growth may ease slightly in the near term, it is expected to remain robust overall,” he said, adding that ASEAN continues to be a significant contributor to global economic activity.
Beyond short-term growth, Balisacan emphasized the region’s long-term transformation toward innovation-driven development.
He noted that while Singapore remains a leader in innovation, other economies such as Malaysia, Vietnam, Thailand, and the Philippines are making notable progress.
He also highlighted Indonesia and Vietnam for exceeding expectations in innovation performance, reflecting a broader shift across the region.
“This shows that innovation is no longer concentrated in a few economies—it is spreading across the region,” Balisacan said.
He added that ASEAN’s high-tech exports have more than doubled in recent years, signaling increased competitiveness and sophistication among regional industries.
Balisacan said sustaining this momentum will be key to ensuring long-term, inclusive growth, as ASEAN economies move toward a more technology-driven and resilient future.