CARTOON BY: AARON PAUL C. CARIL
EDITORIAL
Growth without pulse
The Philippine economy today is in a strange spot: the numbers say it’s growing, but ordinary people don’t feel it. Reports show gains in services, industry, and farming, yet prices keep climbing, jobs are hard to find, and poverty remains stubborn. This raises a tough question: is the country really moving forward, or just standing still?
Stagnation means the economy looks busy but doesn’t make life better. It’s when growth fails to reach the dinner table. Families still struggle with bills, small businesses hesitate to expand, and the promise of progress feels out of reach. In this sense, stagnation isn’t about charts—it’s about the fading of everyday hope.
The downsides of stagnation are serious. It fuels frustration, scares off investors, and weakens government services. Inflation without wage increases widens the gap between rich and poor, while joblessness chips away at community trust. On paper the economy may look alive, but for many Filipinos it feels like a patient kept breathing by a machine—surviving, not thriving.
Recent statistics underline this paradox. In the third quarter of 2025, GDP growth slowed to 4.0%, down from 5.5% in the previous quarter. While the year-to-date average remains at 5.0%, making the Philippines one of Southeast Asia’s faster-growing economies, the slowdown is striking when compared to neighbors. Vietnam is projected to grow at 6.5%, Indonesia at 4.9%, China at 4.8%, Malaysia at 4.5%, while Thailand lags at 2.0%. Inflation in the Philippines is low at 1.7%, which is a bright spot, but the World Bank warns that over 90% of growth since 2010 has come from capital accumulation, not productivity or human capital. In other words, the country is running but not building strength. This imbalance is the very definition of stagnation: growth without pulse.
Even more troubling is the mismatch between rising budgets and rising debt. The 2025 national budget hit ₱6.352 trillion, a record high, while the national debt climbed to ₱16.31 trillion, breaching the 60% debt-to-GDP threshold. Yet despite this spending, growth remains fragile. Much of the budget is eaten up by debt service and short-term relief programs. The government’s ayuda strategy, while offering temporary cash aid to households, has been criticized for being reactive rather than transformative. It keeps families afloat but does little to build long-term productivity or competitiveness. Worse, a recent corruption scandal involving infrastructure funds has shaken public trust, showing how resources meant to drive growth are siphoned away. This is stagnation in its most corrosive form: money flows, but progress stalls.
If stagnation drags on, the damage could last for years. Skilled workers may leave for better opportunities abroad, draining local talent. Government debt could pile up as spending tries to cover weak productivity. The country’s ability to compete globally may shrink, leaving future generations with fewer chances and a legacy of missed opportunities.
Why has the Philippines ended up here? Many experts point to corruption. Research by Transparency International (Transparency International, 2024) and the World Bank (World Bank, 2023) shows how corruption diverts funds, scares off foreign investors, and erodes trust in institutions. Money meant for roads, schools, or hospitals often disappears, slowing down both growth and credibility. Corruption isn’t just a moral issue—it’s an economic disease.
The challenge is clear: stagnation is not only about weak numbers, it’s about weak governance. Growth without pulse cannot last. The Philippines must demand accountability, strengthen institutions, and make sure progress is felt beyond statistics. Only then can the nation move from survival to real prosperity, reclaiming the promise of development for its people.