Economic Victory: PH Hits 2025 Job Targets as Marcos Demands Fiscal Integrity
The Philippine government has officially surpassed its key employment and poverty-reduction goals for 2025, marking a significant milestone in the administration’s "Bagong Pilipinas" economic roadmap. However, rather than declaring a total victory, President Ferdinand R. Marcos Jr. has used the momentum to order aggressive reforms in public spending—specifically targeting the "flood control anomalies" that have plagued previous infrastructure efforts.
For Forex Trading, this dual headline is a classic example of "Growth vs. Governance." Strong labor data typically bolsters the Philippine Peso (PHP) by signaling domestic resilience, but the President's push for budget reforms suggests a focus on long-term fiscal health over short-term spending sprees.
The Numbers: From Pandemic Recovery to Labor Stability
At the 7th Economic and Development Council (EDC) meeting held in Malacañang on January 26, 2026, the economic team revealed that the Philippines has successfully navigated the "scarring" effects of the 2020 pandemic.
Unemployment: Fell sharply to 4.7% in 2025, down from a high of 10.3% in 2020. This indicates that the economy is finally absorbing the millions of workers who were displaced during the lockdowns.
Underemployment: Dropped to 13.6% (from 16.2%), signaling that the quality of jobs is improving. More Filipinos are finding full-time work that matches their skills, rather than settling for part-time "gig" labor.
Poverty Reduction: The number of Filipinos living in poverty decreased by 2.4 million between 2021 and 2023. The administration remains on track to hit its "holy grail" target: a single-digit poverty incidence by 2028.
The Pivot: Budget Reforms and Flood Control
Despite the positive labor data, President Marcos Jr. expressed dissatisfaction with how public funds—particularly those earmarked for climate resilience—have been handled. The President directed a total overhaul of the flood control budget process to prevent a repeat of past "anomalous" projects that failed to protect communities during the 2024–2025 typhoon season.
Key Reform Directives:
Zero-Budget for 2026: In a bold move, the President previously announced that no new funds would be allocated for flood control in 2026 until the ₱350 billion currently in the 2025 budget is fully utilized and audited for quality.
Modern Forecasting: Marcos called for the integration of modern AI and satellite technology to improve disaster response, moving away from "legacy" infrastructure that lacks scientific backing.
ASEAN Cooperation: The President is pushing for a regional "Climate Shield" within ASEAN to bolster economic stability against external environmental shocks.
Forex Focus: Why JPY and USD Traders Should Care
While the Peso is the primary beneficiary of these reports, global Forex participants at the GME Academy should watch the USD/PHP cross for two reasons:
Inflation Management: Stable labor markets and manageable inflation (currently within the 2-4% target range) give the Bangko Sentral ng Pilipinas (BSP) room to maintain interest rates, making the Peso an attractive "Carry Trade" candidate against low-yielding currencies like the Japanese Yen (JPY).
Fiscal Discipline: By cancelling "phantom" flood control projects and demanding budget efficiency, the government is signaling to credit agencies like Moody's and Fitch that the Philippines is serious about its debt-to-GDP ratio. This could lead to credit rating upgrades, further strengthening the Peso in the long run.
The GME Academy Analysis: "Quality Over Quantity"
The shift from simply "creating jobs" to "budget reforms" is the hallmark of a maturing economy. At Global Markets Eruditio, we analyze this as a pivot toward sustainable growth. For Forex Trading for Beginners, the takeaway is simple: a country that fixes its leaks (literally, in the case of flood control) is a country whose currency becomes a safer bet for investors.
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