CARTOON BY: AARON PAUL C. CARIL
EDITORIAL
Mind the gaps
An economy can still be moving while its warning lights begin to blink. Recent remarks by the BSP governor about a Filipino “consumption culture” may have been intended to highlight the country’s low savings and persistent current-account deficit. Yet the diagnosis risks sounding like a rebuke of ordinary families whose spending is largely devoted to food, transport, electricity, medicine, rent, and education. When families have little money left after paying for basic needs, they cannot be blamed for not saving.
The most troubling red flag is the thinning confidence behind the numbers. Businesses delay expansion when rules seem uncertain, public projects stall, or governance questions cloud the horizon. A fall in investment today becomes fewer factories, weaker productivity, and scarcer quality jobs tomorrow. Government officials should therefore treat transparency, predictable policy, and the timely execution of sound infrastructure as economic tools—not merely administrative virtues.
Instead of blaming Filipinos for their consumption, economic managers should ask why incomes leave so little room for savings and why the economy remains dependent on imported food, fuel, machinery, and other essentials. This is part of a troubling habit under the current administration: when results fall short, officials too readily point to consumers, global shocks, climate disruptions, past governments, political enemies, or even investigations, rather than first owning the policy failures within their control. Higher household savings are desirable, but they are an outcome of decent wages, stable prices, accessible financial services, and confidence in the future. A stronger peso will likewise require more competitive exports, productive investment, reliable energy, and industries that earn rather than merely spend foreign exchange.
Public finances are another caution sign. National government debt reached about ₱19.39 trillion in July, while spending again exceeded revenue that month. Borrowing is not inherently reckless when it finances assets that enlarge the economy and improve lives. The danger lies in paying interest for projects that arrive late, cost too much, or yield too little. Every peso borrowed should pass a simple test: will it leave the next generation with greater capacity, or merely a larger bill?
Still, warning lights are useful precisely because there is time to steer. The Development Budget Coordination Committee projects slower growth this year but a recovery thereafter, and the country retains a stable financial system, a large workforce, and resilient service and export sectors. Policy must build on these assets while addressing their weak links: support small firms, accelerate skills training, diversify energy sources, strengthen climate resilience, and direct spending toward projects with measurable public value.
Our appeal to government is firm but fair: look squarely at the red flags, publish clear plans, coordinate agencies, and report results honestly. Citizens do not expect officials to command the global economy or abolish every risk. They do expect vigilance, competence, and the humility to correct course. The best time to heed an economic warning is before it becomes an emergency; the second-best time is now.