Department of Finance Undersecretary Domini S.D. Velasquez called thrift banks “anchors of resilience” as she presented the country’s economic outlook against a backdrop of broader macroeconomic shifts during the 2025 Annual Convention of the Chamber of Thrift Banks (CTB).
“Thrift banks carry our financial system into grassroots communities and help sustain momentum in times of volatility,” she said in her message to banking leaders, policy advocates, and development partners gathered to address sector challenges and opportunities.
While acknowledging external risks, such as global trade slowdowns and rising uncertainty, Velasquez reinforced domestic economic strength through fiscal reform, demographic advantage, and structural resilience.
Velasquez presented macroeconomic data for the first quarter of 2025, noting that GDP growth reached 5.4%, driven by household consumption, public construction, and services expansion. “The growth of the Philippine economy remains robust and broadly aligned with the government’s targets,” she said, citing PSA figures showing growth across services (6.3%), industry (4.5%), and agriculture (2.2%).
She highlighted the country’s demographic strength, with a median age of 25.3 years and a labor force exceeding 51 million, describing the nation as in a “demographic sweet spot” set to peak by 2035.
Velasquez then discussed fiscal strategy anchored in the Medium-Term Fiscal Program, targeting a debt-to-GDP reduction from 60.1% in 2023 to 56.3% by 2028, and lowering the fiscal deficit from 6.2% to 4.3%. “Our refined Medium-Term Fiscal Program ensures a solid fiscal and economic foundation as a launchpad for high takeoff,” she stated.
Panel discussion with (from left) Sun Savings Bank EVP & Treasurer Augusto S. Gonzalez, DOF Undersecretary Domini S.D. Velasquez,
and CTB Convention Committee Co-Chairman Jaime Valentin L. Araneta.
Key reforms in revenue generation include the CREATE MORE Act, which has drawn ₱90.13 billion in approved investments since enactment, and the Ease of Paying Taxes (EOPT) Act, complemented by BIR’s Digital Transformation Roadmap 2025-2028.
Velasquez noted that the BIR collected ₱2.2 billion in the first quarter from withholding taxes on digital platforms, and ₱4.0 billion through the Run After Fake Transactions, or RAFT, initiative. She also cited non-tax revenues from five PPP airport projects approved in 2024 under the PPP Code, including NAIA and Puerto Princesa.
“The resilience we speak of is not built by government alone,” Velasquez emphasized. “It lives in your institutions, in every account opened, every community served. It’s time thrift banks scale that impact.”