Manila: Sen. Loren Legarda on Friday urged policymakers to pursue greener, more inclusive, and value-driven growth following weaker-than-expected economic performance in 2025. Legarda said the latest data showing fourth-quarter gross domestic product (GDP) growth of only 3 percent-the slowest quarterly expansion in nearly 15 years outside the pandemic-should prompt a reassessment of existing development assumptions.
According to Philippines News Agency, full-year growth settled at 4.4 percent, well below the government's target and the lowest annual rate since 2011. Legarda emphasized that these economic figures must be understood in context, inviting reflection on whether current development strategies are effectively responding to today's realities.
The Development Budget Coordination Committee's decision to lower medium-term revenue projections through 2028 was noted by Legarda as underscoring the need for more prudent fiscal management and structural reform, given the tightening investment momentum and fiscal space.
Legarda highlighted that decades of growth, driven largely by large-scale, concrete-heavy infrastructure, have exposed vulnerabilities, especially when governance failures and weak oversight undermine public spending. She cited impacts on logistics, food prices, local enterprise growth, education outcomes, and household incomes as examples of these challenges affecting the entire economy.
The senator pointed out that the country already has a policy foundation for an alternative growth path anchored on sustainability and resilience. She referenced landmark laws she authored or championed, such as the Clean Air Act, Ecological Solid Waste Management Act, Renewable Energy Act, Climate Change Act, People's Survival Fund, Environmental Awareness and Education Act, and the Philippine Ecosystem and Natural Capital Accounting System law, as evidence of this foundation.
Legarda, as co-chair of the Second Congressional Commission on Education (EDCOM II), stressed that education reform must advance alongside economic planning, noting recent findings on learning gaps and skills mismatch. She underscored that economic planning and education reform must move in tandem to ensure progress is not uneven and fragile.
The senator concluded by stating that a development framework linking sustainability, innovation, and education can generate decent jobs, attract responsible investments, and strengthen local economies. She urged a shift away from growth that excludes and towards development that uplifts every sector of society.
