ERNESTO M. PERNIA, PhDSecretary of Socioeconomic Planning

National Economic and Development Authority

Arangkada Philippines 6TH Anniversary ForumMarriott Grand Ballroom, Pasay CIty

September 14, 2017

Philippine

Development Plan

2017-2022

The Philippine Development Plan, 2017-2022LAYING DOWN THE FOUNDATION FOR INCLUSIVE GROWTH, A HIGH-TRUST AND RESILIENT SOCIETY,

AND A GLOBALLY-COMPETITIVE KNOWLEDGE ECONOMY

Photo source: Topleftpixel Tumblr

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6.2 %

2010-20154.5 %

2000-20092.8 %

1990-19992.0 %

1980-1989

Source: Philippine Statistics Authority (PSA)

6.9%2016

Figure 1. Philippine economic growth rate, 1980-2017 (H1).

6.4%Q1 2017

PH economic growth in sharp upward trajectory…

6.5%Q2 2017

7.2

5.1

8.4

4.6

6.96.4

7.9

5.4

8.9

3.2

7.1

6.56.1

4.2

7.3

3.1

7.1

5.8

4.5

6.1

3.8

6.6

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

2004 2005 2010 2011 2016 2017

Q1 Q2 Q3 Q4

Figure 2. Quarterly GDP Growth Rates for Election and Post-election Years

Post-election-year effect on growth

Photo source: primer.com.ph

Photo source: Vuringroup.com

0.71.2

2.4 2.8

1990-1999 2000-2009 2010-2015 FY 2016

Ave

rage

gro

wth

(%

)

Agriculture Industry Services

4.5%

0.40.7

2.5

5.7

1990-1999 2000-2009 2010-2015 FY 2016

Ave

rage

gro

wth

(%

)

Consumption Investment

Government Net Exports

4.5%

Supply SideDemand Side

Source: Philippine Statistical Authority

2.8%

6.2%

6.9%

2.8%

6.2%

6.9%

Figure 3. Contribution to demand and supply side components of economic growth.

Economy’s structural transformation → components on demand and supply sides becoming more diversified

Total factor productivity has been fastest in the ASEAN

Source: Asian Productivity Organization – Productivity Databook 2016

Figure 4. Ave. Total Factor Productivity Growth (%), 2010 – 2014.

2.24

3.33

2.82

2.34

1.93 1.81

1.03

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

ASEAN-6 Philippines Thailand Indonesia Singapore Malaysia Vietnam

Photo Source: industry.gov.ph

Source: The Conference Board Total Economy Database

1.48 1.30

0.85 0.59

0.08

(0.03)(0.39)

(2.83)(3.50)

(3.00)

(2.50)

(2.00)

(1.50)

(1.00)

(0.50)

-

0.50

1.00

1.50

2.00

Philippines Thailand Vietnam Indonesia Cambodia Singapore Malaysia Myanmar

Figure 5. Ave. Total Factor Productivity Growth (%), 2010 – 2016.

Photo Source: industry.gov.ph

Total factor productivity has been fastest in the ASEAN

Figure 6. Average Regional Share in GDP, 2010-2016

Figure 7. Regional per capita income

(constant prices): 2009, 2015 & 2016

Photo source: Aljazeera.com

While macroeconomy appears

robust, marked inequality across

regions remains, and chronic

poverty persists.

Duterte Administration’s0-10 points Socioeconomic Agenda

0. Peace, law and order, and zero corruption

1. Maintain and improve on the strong macroeconomic fundamentals

2. Reform the tax system

3. Deal with constitutional restrictions on FDIs and improve ease of doing business by cutting red tape

4. Accelerate infrastructure investment

5. Develop the agriculture sector

6. Address bottlenecks in agrarian reform and management systems, including security of land tenure

7. Strengthen health care and basic education (K-12)

8. Promote science, technology, and the creative arts

9. Improve social protection programs

10. Strengthen implementation of the RPRH LawPhoto Source: Presidential Communications Operations Office

“By 2040, the Philippines shall be a prosperous, predominantly

middle-class society where no one is poor. Our peoples will enjoy

long and healthy lives, are smart and innovative, and will live in a

high-trust society”

AmBisyon Natin 2040: The Life Filipinos Want

9Photo source: constructionclimatechange.com

MaginhawaFree from hunger and poverty

Secure home ownership

Good transport

Travel and vacation

PanatagEnough resources for day-to-

day needs and unexpectedexpenses

Peace and security

Long and healthy life

Comfortable retirement

MatatagFamily is together

Time with friends

Work-life balance

Volunteering

The Philippine Development

Plan (PDP) 2017-2022 is

anchored on the administration’s

0-10 points Socioeconomic

Agenda.

It is the first of four medium-term

plans geared towards the long-

term vision, popularly known as

Ambisyon Nation 2040.

Executive Order No. 27

All departments, offices and

instrumentalities of the national

government, including GOCCs, and

the local government units are

directed to adopt and disseminate

the PDP 2017-2022 and undertake

efforts leading to its full

implementation.

PDP 2017-2022 Targets

Indicator BaselineTarget

by 2022

Inclusive growth

Per capita income (US$ PPP, Atlas Method)

3,580 (2016)* 5,000

Human development index Medium level High level

Poverty incidence in rural areas (%) 30 (2015) 20

Poverty incidence overall (%) 21.6 (2015) 13-15

Subsistence incidence (%) 8.1 (2015) 5

Unemployment rate (%) 5.5 (2016) 3-5

Underemployment rate in AONCR (%) 19.7 (2016) 16-18

Youth underemployment rate (%) 11 (2016) 8

11

* GNI per capita threshold for upper middle income country at $3,956 (World Bank)

Indicator BaselineTarget

by 2022

High-trust and resilient society

High-trust society Indicators to be developed;

then measured at baseline and ex postResilient communities

Globally competitive knowledge economy

Rank in Global Innovation Index 74 out of 128

countries in 2016

Top one-third

Adults not in employment, education

nor training

Indicators to be developed;

then measured at baseline and ex post

12

PDP 2017-2022 Targets

“MALASAKIT”ENHANCING THE SOCIAL FABRIC

“PAGBABAGO”INEQUALITY-REDUCING TRANSFORMATION

“PATULOY NA PAG-UNLAD”INCREASING GROWTH POTENTIAL

Advancetechnologyadoption

Stimulateinnovation

Reach for demographicdividend

Ensure people-centered, clean, and efficient

governance

Pursue swift and fair administration of justice

Promote Philippine culture and awareness

Ensure peace and security

Accelerate strategic infrastructure development

Ensure safety and build resilience

Ensure ecological integrity, clean and

healthy environment

Expandeconomic

opportunities

Increase accessto economic

opportunities

IMPLEMENT STRATEGIC TRADE AND FISCAL POLICY, MAINTAIN MACROECONOMIC STABILITY, AND PROMOTE COMPETITION

Reduce vulnerability of individuals

Acceleratehuman capitaldevelopment

TO LAY DOWN THE FOUNDATION FOR INCLUSIVE GROWTH, A HIGH-TRUST AND RESILIENT SOCIETY, AND A GLOBALLY-COMPETITIVE KNOWLEDGE ECONOMY2022

MATATAG, MAGINHAWA AT PANATAG NA BUHAY2040

Regional Development Plans

Operationalizes the

Administration’s thrust on rural and

regional development

Contains development framework,

sectoral and spatial strategies,

strategic interventions, and priority

programs to attain the goals and

objectives of the PDP 2017-2022

Translates PDP societal goals and strategies into concrete programs and

projects to be implemented by the National Government, including GOCCs,

GFIs and other offices and instrumentalities –links the plan to the budget.

2017-2022 Public Investment Program (PIP)neda.gov.ph/public-investment-program/

Thank you and mabuhay!

www.neda.gov.ph

pdp.neda.gov.ph

2040.neda.gov.ph