ASIATODAY.ID, WASHINGTON – The World Bank Group’s (WBG) Board of Executive Directors has endorsed a new Country Partnership Framework (CPF) for the Philippines for 2026–2031, prioritizing investments in health and education, private sector jobs, digitization, and economic and social resilience.
The new CPF aligns with the Philippines’ development goals to ensure that support is tailored to the most pressing needs and priorities.
“The Philippines has made remarkable development progress in recent years and this Country Partnership Framework marks a key milestone in our partnership. It is designed to help the Philippines build on this positive momentum to create more jobs for its young population, build resilience to shocks, further reduce regional disparities, and invest in education and health,” said Manuela V. Ferro, Vice President, East Asia and Pacific, World Bank, May 22, 2025.
The Philippines is on the verge of achieving upper-middle-income country status. Its economy has seen greater dynamism in recent years, with average annual real GDP growth rising from 3.7 percent in 1990–2010 to 5.2 percent in 2010–24, and average per capita income growth accelerating from 1.5 to 3.5 percent a year.
With historically low rates of unemployment and underemployment, the Philippines has created 11.7 million additional jobs while real wages increased by 24 percent since 2010. Strong growth and job creation, combined with remittances, led to a decline in poverty rates from 18.1 percent in 2021 to 15.5 percent in 2023. Regional disparities have also decreased, as the income gap between poorer and wealthier regions narrowed.
Despite strong progress, millions of Filipinos still need access to basic services, particularly water and sanitation, and quality education, health services, and nutrition. Weather-related disasters continue to pose serious risks to growth and livelihoods, with over 70 percent of the population vulnerable to multiple hazards.
“Investing in the capacity of local governments is critical for improving access to quality of public services, such as health and nutrition, agriculture, social welfare, and water supply and sanitation,” said Zafer Mustafaoğlu, World Bank Division Director for the Philippines, Malaysia, and Brunei.
“These investments will foster the development of human capital and resilient communities, while also increasing the potential for sustained long-term growth.”
The CPF is the World Bank Group’s joint strategy of the International Bank for Reconstruction and Development (IBRD), the arm of the WBG that supports public institutions in middle-income countries; the International Finance Corporation (IFC), which supports the private sector in developing countries; and the Multilateral Investment Guarantee Agency (MIGA), which provides political risk insurance to private sector investors and lenders.
“A vibrant and dynamic private sector is crucial for the Philippines to achieve its next stage of development and create quality jobs for its growing population,” said Kim-See Lim, IFC Regional Director for East Asia and the Pacific.
“IFC will intensify its efforts to improve access to finance for businesses, foster innovation for productivity and job creation, and catalyze private investments in resilient infrastructure and human capital. Our aim is to support the private sector’s full potential to drive inclusive economic growth and build a more resilient future for the Philippines.”
The WBG will provide financial support to implement the CPF, including long-term IFC support over the CPF period. MIGA will explore opportunities to support cross-border investment. (AT Network)
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