19M illiterate Filipinos should jolt authorities to prioritize education

A report showing that about 19 million Filipino high school and senior high school graduates are illiterate should be considered as a “national emergency” and prompt authorities to prioritize education reforms, a congressman said.

Around 18.9 million Filipinos who completed secondary education from 2019 to 2024 may be considered illiterate, as they struggle to read and comprehend a simple story, according to a Philippine Statistics Authority (PSA) report discussed in a Senate hearing on Wednesday.

“This is not just a crisis — it’s a national emergency,” Party-list Rep. France L. Castro said in a statement. “When one out of five senior high school graduates cannot comprehend a simple story despite years of schooling, we are looking at a systemic failure that threatens our country’s future.”

A 2022 World Bank report showed that nine of 10 Filipinos are unable to read and understand age-appropriate text at age 10.

“It’s alarming that despite the K-12 program, millions of young Filipinos still struggle to understand what they read,” Ms. Castro said.

A new curriculum, introduced in August 2023, sought to streamline learners’ education by focusing on reading, literacy, and numeracy in the first three schooling years of a student.

In 2024, Education Secretary Juan Edgardo M. Angara said the curriculum, launched by Vice-President Sara Duterte-Carpio during her stint as education chief, will continue to be revised based on the experience of teachers and students.

The Philippine government’s failure to ensure a sufficient budget to the education sector have left schools underfunded and teachers with inadequate salaries, Antonio L. Tinio, a party-list nominee in the midterm elections, said in the same statement.

“The government has consistently failed to meet the UN-recommended education budget allocation of 6% of GDP,” he said in Filipino. “The truth is simple: if investment in education is lacking, teachers and education support personnel receive inadequate salaries, and in turn, students learn less.”

The Philippines only allocated 3.6% of its GDP to education in 2022 according to World Bank data, below the 4-6% benchmark set by the Incheon Declaration.

“We need to double our current education budget to address classroom shortages, hire more qualified teachers, increase the salaries of teachers and education support personnel, provide quality learning materials, and implement effective literacy interventions,” said Ms. Castro.

In 2025, the combined budget of the Department of Education, Commission on Higher Education, Technical Education and Skills Development Authority, and state universities and colleges stood at P913.3 billion.

Meanwhile, an education advocacy group on Thursday said that political candidates for this year’s midterm election should prioritize education in their policy agenda.

“It is time to rise above politics and champion education. We urge the candidates to present concrete plans and real solutions that tackle the learning crisis, workforce readiness, and systemic reforms,” Philippine Business for Education Executive Director Hanibal Camua said in a separate statement.

“Education agencies cannot fix this crisis alone — and without bold, sustained support from elected leaders at every level of government, our most critical goals will remain out of reach,” he added.

Source: Business World

PHL upper middle-income status by 2026 seen requiring 6% growth

The Philippines needs to sustain 6% growth until next year to achieve upper middle-income status by 2026, according to National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan.

“I think the upper middle-income status is challenging, but I think if we get 6% this year, 6% next year, we should achieve that upper middle-income status next year,” Mr. Balisacan told reporters during a briefing last week.

The Marcos administration is hoping to be reclassified as an upper middle-income economy this year or by 2026.

Growth of 6% matches the lower end of the government’s 6-8% growth target band for 2025-2028. It would exceed the 5.7% gross domestic product (GDP) posted in 2024, and the 5.5% in 2023.

The World Bank classifies countries by their gross national income (GNI). The four categories are low income, lower middle income, upper middle income and high income.

The Philippines is currently a lower middle-income country with GNI per capita of $4,230 in 2023, up from $3,950 in 2022.

Upper middle-income status is expected to require GNI per capita of between $4,516-$14,005.

Reinielle Matt M. Erece, economist at Oikonomia Advisory and Research, Inc. said upper middle-income status by next year is “still possible.”

“But it became more difficult as the economy takes a hit from heightened geopolitical risks especially in trade, remittances, and foreign investment,” he said.

US President Donald J. Trump on April 9 paused his new reciprocal tariffs for 90 days, although the baseline 10% tariff on almost all US imports remains in effect.

The Philippines faced a 17% reciprocal tariff, the second lowest in Southeast Asia.

Mr. Erece said Philippine GDP must expand by 6-7% annually, though he expects growth to be at the lower end of the target.

Peter Lee U, dean of the University of Asia and the Pacific’s School of Economics, said should the tariffs cause a global recession, it could prevent the Philippines from moving up the income category.

Such a recession can “cause our GDP/gross national product to shrink and our GNI per capita to fall. It’s anybody’s guess whether that will happen. Also, if a global economic slowdown happens, it may take until 2026 before we feel the full effect,” he said via Viber.

JP Morgan estimates a 60% probability of the world economy going into recession by year’s end, up from 40% in March.

Jose Enrique A. Africa, executive director at think tank IBON Foundation said even if Mr. Trump backtracks on the tariffs, inflation is expected to slow growth this year and the next.

“The reputational damage to the US has been done and countries will start adjusting to a world of even more uncertain supply chains, fiscal austerity to accommodate security spending from the vacuum being left by the US, and more volatile finances from a shaken dollar,” he said via Viber.

“These make it unlikely for the Philippines to rise to upper middle income this year — the only question really being how long this reclassification is going to be delayed,” he added.

Before the tariff announcement, World Bank Country Director for the Philippines, Malaysia, and Brunei Zafer Mustafaoğlu said in February that the Philippines is likely to reach upper middle-income status by 2026.

However, Mr. Balisacan said instead of the fixation on income status, the more significant indicators are employment, poverty, literacy and hunger and living standards, rather than GDP or GNI.

Mr. Africa said the Marcos administration instead should prepare to cushion the economic disruption on the vulnerable members of society.

“It should expand public education, health, housing and social protection services, and give redoubled support to domestic food production to moderate prices. The backsliding on the sustainable development goals… risks getting even worse,” he said.

Source: Business World

Inflation eases to 1.8% in March 2025

Philippine inflation continued to ease with the March 2025 inflation rate declining to 1.8% from 2.1% in the previous month, according to the Philippine Statistics Authority (PSA).

March 2025’s inflation rate showed a drop from the same month in 2024, which was at 3.7%. 

The PSA said the national average inflation rate from January to March is currently 2.2%. 

The lowered inflation rate was brought by the slower rise of food and non-alcoholic beverage prices at 2.2% in March 2025, said the PSA. February 2025’s food and non-alcoholic beverage inflation rate was 2.6%. 

There was also a slower inflation rate for transport at -1.1% in March 2025, compared to the decline in February 2025 at -0.2%.  

The PSA also said the prices for restaurants and accommodation services were increasing at a slower rate for March 2025 at 2.3% from 2.8% in February 2025. 

Slower inflation rates were also recorded in the following commodity groups, with their current inflation rates in March 2025 compared to February 2025: 

• Clothing and footwear: 1.8% (down from 2.1%) 

• Furnishings, household equipment and routine household maintenance: 2.1% (down from 2.3%)  

• Health: 2.2% (down from 2.3%) 

• Recreation, sport and culture: 2.2% (down from 2.4%) 

However, several commodity groups still recorded higher inflation rates, namely: 

• Alcoholic beverages and tobacco: 3.6% (up from 3.4%) 

• Housing, water, electricity, gas and other fuels: 1.7% (up from 1.6%) 

• Information and communication: 0.4% (up from 0.3%)

Food and non-alcoholic beverages were the main contributors to the overall inflation rate, as well as housing, water, electricity, gas and other fuels. Despite the drop in inflation rate, restaurants and accommodation services were also a contributor to the overall increase of the prices of goods.

Core inflation, which does not include volatile goods such as food and energy, also slowed down, going from 2.4% in February 2025 to 2.2% in March 2025. 

The National Economic and Development Authority (NEDA) said this is the lowest inflation rate since the COVID-19 pandemic. In May 2020, inflation was 1.6%. 

“While the inflation rate continues to ease and remain within the target range, we commit to monitoring risks and shocks, particularly on anticipated electricity rate hikes and higher prices of fish and meat, and addressing them through timely and targeted  interventions,” NEDA Secretary Arsenio Balisacan said in a statement. 

Food inflation 

Food inflation has eased to 2.3% in March 2025 from 2.6% in February 2025. 

Rice was the largest contributor to the decline in food inflation. Rice inflation fell further from -4.9% in February 2025 to -7.7% in March 2025. 

Inflation rate for meats and other slaughtered land animals declined from 8.8% in February 2025 to 8.2% in March 2025. 

The inflation rate of vegetables, tuber, plantains, cooking bananas and pulses also declined from 7.1% in February 2025 to 6.9% in March 2025. There was also a decline in corn. As it went from -1.6% in March 2025 compared to the 0.7% the previous month. 

Meanwhile, higher inflation rates were recorded among the following in March 2025: 

• Fish and other seafood: 5.5% (up from 2.9%) 

• Milk, other dairy products and eggs: 3.4% (up from 2.7%) 

• Oils and fats: 4.0% (up from 3.5%) 

• Ready-made food and other food products not elsewhere classified: 3.8% (up from 3.7%) 

Source: Philstar