Marcos restores economic stability, but reforms lag—GlobalSource

MANILA, Philippines — The Marcos administration restored stability but missed reforms to boost long-term competitiveness, New York-based think tank GlobalSource Partners said on Tuesday.

In a commentary, economists Diwa Guinigundo and Wilhelmina Manalac called the first four years “mixed but consequential.”

“The administration has yet to convert macroeconomic stability into broad-based productivity-enhancing reforms. The economy remains constrained by weak agricultural productivity, inadequate human capital, governance deficiencies, uneven implementation capacity, and insufficient private investment,” they said.

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“Consequently, productivity growth has remained modest, quality employment generation has been slower than desired, and the pace of poverty reduction has fallen short of the country’s long-term aspirations,” they added.

The report said growth averaged 5.2 percent in 2023–2025 but slowed to 2.8 percent in early 2026. FDI fell sharply, with April inflows down 58.8 percent to $250 million, a 10-year low.

“Investors ultimately respond not only to stable inflation and prudent fiscal management but also to the quality of governance, regulatory predictability, contract enforcement, infrastructure efficiency, human capital, and the ease of doing business,” GlobalSource said.

With two years left, it said the challenge is to “convert stabilization into transformation and inclusive development.” /pai INQ