‘Strong middle class key to long-term growth’

September 22, 2024 | 12:00am

MANILA, Philippines — The country will need to take advantage of global megatrends like digitalization and climate change to strengthen its middle class and achieve the long-term goal of ending poverty, according to the National Economic and Development Authority (NEDA).

Speaking at the 10th Annual Public Policy Conference, NEDA Secretary Arsenio Balisacan said the government aims to expand the country’s middle class as it recognizes the group’s role in driving economic growth.

“By leveraging global megatrends, we aim to build resilience among Filipinos and expand the middle class, a crucial component of our nation’s long-term development vision as articulated in AmBisyon Natin 2040,” he said.

The country’s collective long term vision is for a Philippines with a predominantly middle-class society, where poverty is eradicated and every Filipino enjoys a life of dignity and opportunity.

Citing data and studies from the Philippine Institute for Development Studies and the Philippine Statistics Authority, Balisacan said the middle class constitutes approximately 40 percent of the Philippine population, with monthly family incomes ranging from P21,200 to P131,500.

“Their steady income, investments in education and consistent consumption of goods and services fuel economic progress and provide opportunities for broader national development,” Balisacan said.

As the most mobile segment of our society, Balisacan said the middle class was uniquely positioned to take part in decision-making and stay attuned to socio-political conditions, which could lead to opportunities for their social advancement.

Through the strategies outlined in the country’s development blueprint, the Philippine Development Plan (PDP) 2023 to 2028, aimed at creating jobs and accelerating poverty reduction, Balisacan said the government wants to expand the middle class.

“In line with the PDP priorities, we must harness the middle class strengths, particularly their capacity to adapt to and capitalize on global megatrends,” he said.

Among these megatrends is digitalization, which has changed the way businesses operate and opened new job opportunities for Filipinos.

“This development led to exceptional growth in information technology, business process management and creative industries,” Balisacan said.

The digital economy provided more than nine million jobs, primarily in e-commerce and contributed 8.4 percent to the economy last year.

Balisacan also cited the growing movement toward climate action as another global megatrend the Philippines can capitalize on.

“While climate change presents serious challenges, it also offers the chance to create green jobs and find innovative solutions to various climate crises while improving the quality of life for future generations,” he said.

To sustain the growing economy and create green jobs, as well as ensure that communities remain resilient to climate change effects, he said there is a need to accelerate renewable energy development.

“Strengthening the middle class becomes increasingly vital as we progress to realize our country’s long-term vision. Thus, we must commit to seize the opportunities presented by global megatrends by enacting and implementing the appropriate and strategic policies and programs,” he said.