What Is the OECD Saying About Philippines Economic Growth?

OECD Says Reforms Could Help Strengthen Philippines’ Economic Growth

February , 2026 : The Philippines could continue its strong economic growth if it introduces wider reforms to improve competition, create more formal jobs, maintain careful public spending, and prepare better for climate risks, according to a new OECD report.

The OECD’s first Economic Survey of the Philippines says the country has been one of the world’s fastest-growing economies over the past 15 years. The report forecasts that the Philippines’ GDP will grow by 5.1% in 2026 and 5.8% in 2027, after growth of 4.4% in 2025. Inflation is expected to reach 2.6% in 2026 and 3.0% in 2027.

OECD Secretary : General Mathias Cormann said the Philippines has shown strong economic resilience. Since 2010, the country’s output has more than doubled, while poverty has been reduced by more than half. He said stronger competition and more formal job creation would help support income growth and improve living standards. He also said stronger climate adaptation would help reduce risks from extreme weather.

The findings were released in the OECD’s first Economic Survey of the Philippines, published on 12 February 2026

The report says strong fiscal discipline would help keep public debt on a careful and sustainable path. It also recommends improving tax and transfer systems, including better-targeted social support. The OECD says addressing corruption in public investment would help improve spending efficiency and support a better business and investment environment.

Competition reforms are also highlighted as an important step to improve productivity. The OECD says sectors such as electricity and telecommunications need stronger competition because high prices and input costs can affect the wider economy.

Major Players in Electricity and Telecommunications

The OECD report points to electricity and telecommunications as two important sectors where stronger competition could help reduce prices and input costs for the wider economy. In the Philippines, these sectors are led by a limited number of major companies. In electricity, key names include Meralco, San Miguel Corporation, AboitizPower, ACEN Corporation, First Gen Corporation, and the National Grid Corporation of the Philippines. In telecommunications, major players include PLDT / Smart Communications, Globe Telecom, DITO Telecommunity, and Converge ICT Solutions.

The OECD did not accuse any individual company. Instead, it said broader pro-competition reforms could help improve productivity and make essential services more affordable for households and businesses. The report also highlighted the need for clearer separation between electricity network infrastructure and power generation, along with open-access network rules in telecommunications that could allow more firms to use existing infrastructure under regulated conditions.

In electricity, the report says reforms should focus on clearer separation between network infrastructure and energy generation. In telecommunications, open-access network rules could help households and businesses benefit from lower prices by requiring major operators to share infrastructure at regulated tariffs.

The OECD also says administrative procedures should be simplified across the economy, including for foreign investors. This could help attract more investment and support business activity.

On jobs and social protection, the report recommends a unified, multi-level system. It says universal core benefits could be funded through general tax revenues, while additional benefits could be supported through progressive social contributions. The OECD says this would improve social protection while encouraging more formal employment.

According to the OECD, the Philippines has been one of the world’s fastest-growing economies over the past 15 years.

The report also says minimum wages should be aligned more closely with regional productivity. This could help reduce informal work and lower the number of workers earning less than the minimum wage.

Climate risks are another key concern. The OECD says the Philippines faces growing risks from extreme weather. It recommends investment in climate adaptation, including stronger infrastructure, early warning systems, and wider home insurance. The report says priority should be given to areas where poverty and climate risks are both high.

For Metro Manila, the OECD says better flood management is needed. It also says more effective water pricing could help address land subsidence caused by excessive groundwater extraction.

The report also recommends increasing the coal excise tax to support the gradual phase-out of coal-based electricity generation. This would help reduce emissions and support the country’s climate targets.

Overall, the OECD says the Philippines has strong economic potential, but reforms in competition, formal employment, public finance, investment, and climate adaptation will be important to maintain growth and improve living standards in the years ahead.

Editorial Note: This article is intended for informational and educational purposes only. It provides analytical insights based on publicly available information and does not constitute financial, legal, or political advice. Readers are encouraged to consult official sources and expert advisors for verified guidance.