Philippines needs broader growth base to withstand shocks, say economists
Economists in the Philippines argue that the country must diversify its economy beyond consumption and services to achieve high-income status. They suggest focusing on building productive capabilities in manufacturing and technology rather than just shifting sectors.
Why it matters
Economic diversification is a critical strategy for developing nations to build resilience against global market shocks and improve long-term growth.
By Justine Irish D. Tabile, Senior Reporter
THE Philippines must strengthen its productive capabilities and diversify an economy still heavily reliant on consumption and services to become more resilient to external shocks and advance toward high-income status, economists said.
Economists said manufacturing, agribusiness, renewable energy, digital services, and creative industries could attract more investment, boost exports and create higher-quality jobs, but this would require stronger workforce skills, better infrastructure and deeper integration of local firms into domestic and global supply chains.
Ateneo de Manila University economics professor Leonardo A. Lanzona said diversification alone would not ensure broad-based development if new industries failed to build local capabilities and cap ture more income domestically.
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