Slowing population growth opens window for faster economic growth

As the Philippines’ population growth rate has drastically slowed down, the country now has a window of opportunity to experience faster economic growth, as the working population makes up a larger share of the total population, according to an expert.

“We have an opportunity to experience an economic growth that we have not seen before or could not have imagined,” said Jose “Oying” G. Rimon II, founding director of the William H. Gates Sr. Institute for Population and Reproductive Health at Johns Hopkins University’s Bloomberg School of Public Health. He said at the sidelines of the National Population, Health and Environment Conference.

“This will happen if we do the right policies and the right investment. The right investment must be in education and in health,” Mr. Rimon added.

According to the Philippine Statistics Authority (PSA), the country’s population growth rate (PGR) slowed to 0.8% annually between 2020 and 2024, from 1.63% in the 2015–2020 period.

Mr. Rimon said the lower population growth rate could lead to a decline in the young dependent population (aged 14 and below) and an increase in the working-age population, which could further support economic growth, a trend referred to as the demographic dividend.

According to the Philippine Statistics Authority (PSA), the share of the working-age population rose by one percentage point to 64% in 2020 from 63% in 2015, while the proportion of the young dependent population declined to 31% from 32% over the same period.

Meanwhile, the ASEAN+3 Macroeconomic Research Office (AMRO) said the Philippines recorded the third-fastest average growth in its working-age population at 2.27%, behind Malaysia (2.41%) and Laos (2.39%).

Mr. Rimon said the demographic dividend in the Philippines is expected to last for about 25 years—a period the government must maximize, as neighboring countries like China, Singapore, and Malaysia achieved significant growth during similar windows.

To maximize this window of opportunity, he said the government must invest in quality education, particularly by strengthening the country’s technical-vocational programs and specialized schools, especially those focused on technology.

He also emphasized the need for smoother internship programs for emerging talents.

To further expand the country’s universal healthcare access, Mr. Rimon said the Philippines could also check how government health insurance systems operate abroad.

To further expand the country’s universal healthcare access, Mr. Rimon said the Philippines could also study how government health insurance systems operate abroad. He added that the government must also ensure the health and well-being of the young dependent population.

Source: Business World

Philippines found most dishonest in region on money matters

Financial education gaps, economic stress and “face-saving” cultural norms have forced Filipinos to misrepresent their finances, making the Philippines the most dishonest country in Southeast Asia when it comes to money, according to a study.

ROSHI, a Singapore-based fintech firm, said in its Financial Honesty Study: Southeast Asia report that the Philippines had the highest financial misreporting rate in the region at 47 percent, which means that about half are not likely to give an accurate picture of their financial situation.

Indonesia came second at 45 percent, then Singapore at 41 percent.

Vietnam was the most honest, with a dishonesty rate of only 34 percent, followed by Thailand at 36 percent.

The problem, ROSHI noted, was that Philippine society tended to place strong emphasis on social reputation despite financial hardship and literacy gaps, making it hard for financially challenged individuals to seek help.

In Philippine culture, ROSHI pointed out that there was “enormous” pressure to keep face despite financial struggles.

“Admitting difficulties brings shame to the entire family and risks exclusion from social support networks that provide vital help,” ROSHI noted in its report based on a survey across different age groups in six Southeast Asian markets.

This makes misrepresentation of finances a “rational way to preserve social standing and maintain access to economic opportunities,” it added.

Economic challenges are also directly connected with financial dishonesty. The Philippines currently has limited economic opportunities, along with a high cost of living.

Vietnam, on the other hand, has a strong anticorruption focus and expanding opportunities. Its culture also emphasizes trust and community accountability, which both sustain “honest financial behavior.”

Overconfidence bias, or believing that one is better at handling finances than they actually are, is also among the factors that can affect financial transparency.

The Philippines had a high level of overconfidence at 60 percent, while that of Vietnam, which was the most financially honest country in the region, was at around 40 percent.

Risky investments

According to ROSHI, overconfidence can lead to risky investments, low savings and poor spending habits.

At the same time, the Philippines had the highest “present bias” at 68 percent, entailing that people would rather spend money now than save for retirement.

“This reflects the reality that when people struggle to meet daily needs, planning for the future becomes nearly impossible,” ROSHI said.

In terms of age groups, young adults (21 to 34 years old) were the most dishonest in their finances, while older adults (50 to 65 years old) were the most honest. This is a pattern that is present across all countries in Southeast Asia.

It still all boils down to social pressures, ROSHI found.

For example, social media trends often tie financial image to personal identity.

“As a result, many young adults make financial decisions in environments that reward displays of material success, making it costly to acknowledge financial constraints openly,” ROSHI said.

In all, there is a need to intertwine financial education and policy with cultural values and economic realities.

“Markets that achieve natural alignment between cultural values and economic incentives around financial transparency create lasting advantages, while those facing cultural-economic conflicts require recognition and adaptation strategies that acknowledge underlying behavioral patterns,” ROSHI noted.

Source: Inquirer

Climate change and consumer behavior

Climate change has significantly intensified over the years, impacting lives around the world. In a recent Deloitte study, more than half of respondents said they have experienced at least one extreme weather event, pushing majority of them to agree that climate change is an emergency. Organizations are also feeling increasing pressure to integrate sustainability in their business agenda, with consumers demanding the same from producers of goods and services.

Globally, almost 60% of respondents said they make deliberate changes to their personal activities and purchasing habits to help mitigate environmental damage. Thirty-three percent also said that sustainability considerations are impacting where they bank and invest their money, and nearly 40% are paying more for sustainable product alternatives.

Beyond their personal steps toward sustainable consumption, people’s heightened environmental awareness extends to their workplace expectations. Among those surveyed by Deloitte, there has been a decline in the number of people who believe their employer is doing enough to address climate change and sustainability.

Moreover, almost 25% globally said they have considered switching jobs to work for a more sustainable company, and the same number of people say that they will consider a potential employer’s position on sustainability before accepting a job. This just proves that sustainability is slowly becoming less of just a consideration, and more of a key criterion in choosing where to work.

THE YOUNGER GENERATIONS’ EMOTIONAL INVESTMENT AND INITIATIVES

While concern for the environment spans across all generations, Gen Zs and millennials have expressed greater emotional engagement and more curiosity about the impact of climate change.

In the Philippines, climate change as a cause of anxiety is especially apparent. Over 90% of the country’s college-educated, working Gen Z and millennials have expressed worry about their environmental impact, and most of them intend to make better climate choices. Eighty percent are willing to pay more to purchase environmentally sustainable products or services, 95% primarily use recyclable or recycled plastics/paper to reduce environmental impact, and 90% improve their home to make it more sustainable.

These personal commitments signal a clear expectation: businesses must respond by offering more sustainable choices. As the younger generations increasingly align their actions and behaviors with environmental values, they look to companies to complement these efforts with sustainable products, services, and practices.

Furthermore, their appeal for businesses to prioritize environmental responsibility also bleeds into their employer choices, with 95% of them considering companies’ environmental credentials or policies when choosing a potential employer, and 30% of them changing jobs and/or industries due to concerns about the organization’s sustainability impact, higher compared globally.

Along with their expectations from businesses, Gen Zs and millennials are also calling for increased involvement from the government in mitigating climate change impacts. They urge policymakers to take climate action, fostering a sustainable future through policies and public-private partnerships.

Clearly, from choosing recycled packaging to calling for the government and businesses to prioritize sustainable practices, these generations are driving the shift in consumer behavior and employer expectations.

CLIMATE ACTION IS NO LONGER OPTIONAL BUT IMPERATIVE

The incorporation of sustainability-related actions to both personal and professional domains is already an existing principle for most, especially younger generations. As sustainability becomes embedded in people’s every-day lives and decision-making, businesses must evolve in response.

Organizations that fail to integrate it into their culture and operations risk losing climate-conscious customers and top talent. In this age of accountability, being sustainable shouldn’t just be a differentiator — it should be the baseline.

Source: Business World