PDP gaps weigh on Ph competitiveness in ASEAN

Uneven progress in the implementation of the Philippine Development Plan (PDP) 2023–2028 is clouding the Philippines’ Asean competitiveness. Strong-performing sectors are being tempered by slower gains in key economic foundations.

According to the Philippine Institute for Development Studies’ (PIDS) latest discussion paper, the country’s progress toward the Asean Economic Community (AEC) integration is a “mixed landscape.”

“Notable gains have been made in trade openness, macroeconomic stability, and human development. However, significant challenges persist in sectoral productivity, climate resilience and governance,” PIDS said.

The AEC Blueprint 2025 has five key characteristics as a guide for economic integration. These are a highly integrated and cohesive economy; competitive, innovative and dynamic Asean; enchancing connectivity and sectoral cooperation; resilient, inclusive, people-centered Asean; and a global Asean.

This makes the PDP crucial, as it translates these regional goals into domestic strategies.

However, a PIDS analysis found that 46 percent of the 439 indicators listed in StatDev 2024—based on PDP outcomes—are unlikely to be met, particularly in agriculture, infrastructure, peace and security, and social protection.

Across the five AEC characteristics, the Philippines ranks in the top tier for only three of 28 indicators. Also, 13 are in the middle tier, seven in the bottom tier and five lacking country-specific data.

“Overall, the Philippines demonstrates modest progress but remains constrained by gaps in resilience, sustainability and global integration, requiring focused policy responses,” PIDS said.

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“While several high-performing chapters, such as services, science and technology, and competition, exist, they are overshadowed by critical weaknesses in foundational sectors, including agriculture, social protection and infrastructure,” it added.

The state-run think tank noted that these gaps stem from governance challenges, limited private sector activity in key areas, and differences in capacity across regions.

External factors, such as climate change and geopolitical developments, also threaten the country’s ability to meet its commitments.