Four positive economic developments

Amid a seemingly clouded if unpredictable economic environment, four good things have stood out lately:

One, the Philippines has achieved, after nearly 40 years of trying, an Upper Middle Income Country (UMIC) status, with per capita income of $4,850, capping, says the World Bank, “two decades of sustained economic growth and rising living standards (and) reforms that stabilized the macroeconomy.”

“Sustaining and deepening that achievement will require the right reforms to navigate current headwinds, unlock stronger, more inclusive growth and better jobs and continue reducing poverty and inequality,” says the bank.

The World Bank wants electricity costs – among the highest in ASEAN – brought down, as “a powerful lever to boost firm competitiveness and household living standards.”

The bank’s report sees a scenario in which renewable energy reaches 35 percent of the energy mix by 2030, consistent with government targets. “This path, if undertaken alongside investments in transmission, storage and grid flexibility and market competition reforms, could reduce residential electricity prices by as much as 28 percent in the near term, create approximately 161,000 new jobs and lift around 730,000 Filipinos out of poverty.”

Two, poverty incidence or ratio has declined to its lowest level ever – 9.7 percent, in 2025, “bringing Filipinos living below the official poverty threshold into single-digit territory for the first time in history,” according to the Philippine Statistics Authority (PSA). The 9.7 percent means only 11.08 million Filipinos are deemed poor, down from 15.5 percent or 17.5 million in 2023. More than 6.42 million Filipinos were rescued from poverty under the Bongbong Marcos Jr. presidency. The single digit poverty incidence was achieved three years ahead of schedule.

Three, the Philippines has retained its investment grade credit ratings, making borrowing cheap.

On Aug. 21, 2026, Rating and Investment Information Inc. (R&I) affirmed the Philippines’ “A−” investment-grade with a stable outlook. An “A−” rating means the government has a strong capacity to repay its debts. R&I had previously raised the Philippines to the “A” level under the Marcos administration in 2024. Moody’s followed on Aug. 24, with a “Baa2” investment-grade rating with a stable outlook. A “Baa2” rating means moderate credit risk.

Four, the campaign against large-scale corruption and abuse while in office, especially from the notorious flood control scam that has meant the loss of P1 trillion in taxpayers’ money, and mass killings during the Duterte regime, remains rigorous and unrelenting.

Vice President Sara Z. Duterte is facing trial before the Senate impeachment court.

Two incumbent senators, Jinggoy Estrada and Rodante Marcoleta, are in jail for alleged plunder. A third, Ronald “Bato” dela Rosa, is a fugitive from justice for crime against humanity. A former congressman and Cabinet member, Mike Defensor, is in jail for plunder. Former president Rodrigo Roa Duterte has been in jail for 17 months in The Hague facing trial for crimes against humanity.

Highlights from the unprecedented anti-corruption drive under the Marcos Jr presidency:

• The ongoing impeachment trial of the now twice impeached VP Duterte is in high gear after 18 trial days, with the House of Representatives prosecution panel at a steady pace to prove the guilt of the first Philippine vice president ever impeached, not once but twice, and the first VP to face trial before the Senate convened as an impeachment court.

Sara Duterte is accused of four major charges where guilt means removal from office:

One, misuse of confidential funds and wastage of P612.5 million of taxpayers’ money that allegedly went to nearly 5,000 recipients, at least two-thirds of whom never existed on earth;

Two, bribery – she regularly handed out cash envelops to subalterns to make them malleable to her wishes;

Three, unexplained wealth (P6.77 billion in money transactions took place in her bank accounts jointly with her husband in 20 years despite her earning only P24 million in legitimate salaries as a public official during the same period);

Four, grave threats. She repeatedly threatened publicly to kill President Ferdinand R. Marcos Jr., First Lady Louise Araneta Marcos and former speaker Martin Romualdez and announced she hired assassins for the purpose.

Alleged recipients of Sara’s P612.5-million missing confidential funds sport names like camote, mango, cheese, animals like turtle and cats. At least two had names that mean vagina and another two whose names mean darkness. Three names reek of bad odor. The implication: the hard-earned taxpayers’ money was pocketed and not delivered to claimed recipients who do not exist.

P16 million went to rental of alleged safe houses at the rate of P1.4 million per day. At that rate, you can build 11 houses instead of renting them for a day.

• Abroad, former president Rodrigo Duterte has been in jail in The Hague, the Netherlands since his arrest on March 11, 2025 to face trial for crimes against humanity, the killing of from 6,200 to 30,000 innocent civilians in the largest state-sponsored mass killings during his presidency and years as long-time Davao City mayor. His co-accused, former national police chief and incumbent senator Ronald dela Rosa, has been declared a fugitive from justice.

With less money stolen, more money can go to poverty alleviation.

The Marcos administration will boost protection for the 6.5 million Filipinos lifted out of poverty during the last two years, while creating more jobs, raising incomes and lowering living costs of the middle class.

“That is the marching order of the President: support the middle class and prevent 6.5 million Filipinos from sliding back into the zone of poverty,” Executive Secretary Ralph Recto said.

“But this is not the time to rest. That goal is not the finish line. The work goes on,” Recto said.

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