Recalibrating growth: Legarda advocates for green, inclusive and value-driven development

Following the latest adjustments to the country’s economic outlook, Senator Loren Legarda urged a renewed examination of how the Philippines pursues growth and prepares for future challenges.

Recent data revealed that fourth-quarter gross domestic product (GDP) grew by only 3 percent. This was the slowest quarterly expansion in nearly 15 years, excluding the pandemic. This brought the full-year expansion for 2025 to 4.4 percent, significantly missing the government’s target and marking the lowest annual growth rate since 2011.

In response, the Development Budget Coordination Committee (DBCC) revised its medium-term revenue projections downward through 2028, reflecting a more cautious assessment of investment momentum and available fiscal space. The new targets indicate a significant scale-back: revenue for 2026 is now projected at P4.824 trillion down from P4.983 trillion, 2027 at P5.122 trillion down from P5.366 trillion, and 2028 at P5.568 trillion down from P5.914 trillion. These adjustments underscore the necessity for more prudent fiscal management and structural reforms as the administration faces its most constrained economic environment in over a decade.

“These economic figures must be understood in context,” Legarda said. “They invite us to reflect on whether our development strategies are responding effectively to today’s realities.”

For decades, economic expansion has been driven largely by large-scale, concrete-heavy infrastructure. Roads, flood control systems, reclamation projects, and major public works were expected to deliver productivity and resilience. Recent governance failures, however, have underscored the risks of relying on the same approaches without addressing institutional weaknesses. When infrastructure programs amounting to hundreds of billions of pesos annually, and extending into the trillions across multiple budget cycles, are undermined by corruption and weak oversight, the economic consequences become systemic.

“These challenges affect the entire economy,” Legarda noted. “They influence logistics, food prices, local enterprise growth, education outcomes, and household incomes, and in doing so, they shape the country’s capacity to recover and sustain growth.”

The Senator emphasized that the country is not without alternatives.

“We do not need to start from zero. We have laws that embed sustainability and resilience into the core of economic planning,” Legarda said.

Long before sustainability entered mainstream economic discourse, Legarda advanced measures that linked national progress with environmental integrity and human development. These include the Clean Air Act, Ecological Solid Waste Management Act, Renewable Energy Act, the Climate Change Act and the People’s Survival Fund, the Environmental Awareness and Education Act, and the Philippine Ecosystem and Natural Capital Accounting System (PENCAS) law.

“These laws represent more than environmental protection, they outline a viable economic alternative where fiscal discipline, investment stability, and human development reinforce each other,” she said. PENCAS, in particular, ensures that natural capital and ecosystem services are integrated into national accounts, helping the government see clearly the economic cost of environmental degradation and the long-term gains from conservation.

Legarda further stated that sustainable growth also depends on inclusion and innovation. She highlighted measures she championed, such as the Magna Carta for Micro, Small, and Medium Enterprises and the Philippine Innovation Act, which strengthen the real economy by expanding support for local enterprises and enabling innovation-driven growth. Together, these laws promote inclusive productivity and long-term competitiveness rather than short-term expansion alone.

As a four-term Senator and Co-chair of EDCOM II, Loren Legarda has drawn urgent attention to the 2026 commission findings on learning outcomes and skills mismatch, describing them as a “wake-up call” for policymakers. “Economic planning and education reform must move in tandem. Unless we invest in human growth, progress will remain uneven and fragile,” Legarda emphasized. Her recent remarks underscore a long-standing commitment to the sector, being instrumental in the passage of the Universal Access to Quality Tertiary Education Act, UniFAST Act and ARAL Program Act, which addresses critical learning gaps to ensure the national workforce remains competitive and resilient. “Education is intrinsically linked to labor and the development of a strong, competitive workforce,” she added.

According to Legarda, these interlinked policy measures on sustainability, innovation, and education form a coherent framework for a more resilient and inclusive economy. These policies guide practical reforms in infrastructure planning, responsible resource management, data-informed decision-making, and enterprise development. She stressed that these could generate decent jobs, attract sustainable investments, and strengthen local economies from the ground up

“As our economic planners revisit assumptions and chart the country’s medium-term path,” Legarda said, “we must move away from growth that excludes and toward development that uplifts every sector of society. This means ensuring that every peso spent translates to stronger communities, better learning, and decent livelihoods.” (30)