The Philippines has long been a consumer-driven economy, where consumer spending accounts for more than 70% of the country’s gross domestic product. However, the Global Risks Report 2023 of the World Economic Forum identified an impending cost-of-living crisis as the most severe global risk in the next two years, considering inflationary pressures that impact the consumption patterns of the populace.

Mitigating this looming risk and attaining a more sustainable and inclusive growth would necessitate the economy to shift to a more investment-led growth. In particular, the country’s manufacturing sector can be strengthened by supporting investors that cater to both the international and domestic markets to boost their productivity. Domestic-oriented enterprises likewise play a crucial role in spurring economic growth, just like their export-oriented counterparts. This strategy ushers a strong multiplier effect by increasing consumption, creating jobs and livelihood opportunities, ensuring income security, boosting productivity, and enabling inclusive growth.

In this light, there is a need for the government to support this economic transition through the formulation and implementation of effective business-friendly policies. Equally important is strengthening the country’s economic relations with its most beneficial trading and investment partners such as the United States and Japan. With the Philippines’ inherent strengths in the areas of demographics, natural resources, and geographical location, building the momentum for long-term growth and development through investments will be easy if good governance and the rule of law are upheld.

With this, the Stratbase ADR Institute invites you to a town hall discussion entitled, “Advancing the Philippine Manufacturing Sector for National Prosperity”,which is one of the breakout sessions of the Philippine Economic Society’s (PES) 61st Annual Meeting and Conference. This session was held on 8 November 2023, Wednesday, from 10:10 AM to 11:40 AM (PHT) at the Novotel Manila Araneta City, Quezon City.

Indeed, veering towards a more investment-driven growth, especially in the manufacturing sector, complemented by developing the workforce, has the potential to generate much-needed jobs and livelihood opportunities for many Filipinos and pave the way for long-term national prosperity.