MILAN, ITALY — Secretary Amenah F. Pangandaman of the Department of Budget and Management (DBM), along with Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio M. Balisacan, led the Philippine delegation at the inaugural Philippine Economic Dialogue (PED) in Milan, Italy, on May 6, 2025.
At the PED, attended by over 90 potential investors, Secretary Pangandaman highlighted the pivotal role of the FY 2025 National Budget in sustaining economic growth and resilience, while Secretary Balisacan showcased the country’s strong economic performance and desirable market features.
“At our current growth trajectory—and barring significant external shocks—we anticipate reaching a USD 2 trillion economy by 2050,” Secretary Balisacan said in his keynote speech.
In addition, Lombardy Region, Italy Undersecretary for International and European Relations Raffaele Cattaneo emphasized that the Philippines is the protagonist of the century: “You have all the conditions to be one of the protagonists, as one of the fastest growing economies in Asia with a large and young population.”
Driving Growth through Climate Resilience, Infrastructure Development
During the panel discussion, Secretary Pangandaman underscored the government’s commitment to climate resilience, noting that “our climate change expenditures grew by 152.7 percent from last year’s budget.” This is the highest budget increase since 2015, accounting for 18.3 percent of the FY 2025 National Budget, well above the target of 9.0 percent under the Philippine Development Plan (PDP) 2023-2028.
Secretary Pangandaman also emphasized that infrastructure development remains among the priority sectors, with the Build-Better-More Infrastructure Program receiving Php 1.645 trillion or 5.7 percent of GDP. This will fund the construction of key infrastructure projects that promote physical connectivity and inclusive economic growth, such as road networks (Php 624.8 billion), flood control systems (Php 350.5 billion), railways (Php 17.93 billion), airport systems (Php 7.70 billion), irrigation systems (Php 56.42 billion), school buildings (Php 37.09 billion), and hospitals and health centers (Php 19.43 billion).
Leveraging Digitalization in Procurement
In addition, the Budget Chief showcased the government’s landmark reform, the New Government Procurement Act, as the country’s biggest anti-corruption measure in recent history.
“A major new component of the new law is digitalization. One section of the law provides for an e-marketplace, similar to Amazon, where agencies and local government units can click what they need and we can deliver it,” Secretary Pangandaman explained.
The e-marketplace is an online platform where agencies may directly procure supplies and equipment from competent and reputable suppliers.
“It has been very successful so far. We will introduce new items as we go along with the implementation,” she added, noting that the platform has already been used to procure motor vehicles, airline tickets, cloud computing services, and software licenses.
Strong PH-Italy Ties
Italian banks and companies likewise recognized the Philippines as one of the most attractive destinations for international investments, given its sustainable growth and economic resilience.
In his welcome remarks, Ambassador of the Philippines to the Italian Republic H.E. Nathaniel G. Imperial noted that “the Philippines is more than ready to do business with Italy and with Europe,” as the economy “has shown a strong recovery from the pandemic, an improved regulatory framework, accelerated infrastructure spending, better ways of doing business, and provides preferential access to regional markets.”
“Our Philippine Embassy and Consulate General in Milan, together with our trade and commercial office in Paris, continue to support the participation of the Philippine private sector, including the newly formed business chambers in Rome and Milan, in trade fairs, exhibits, and expositions hosted by Italy to showcase Philippine exports from the agricultural and manufacturing sectors, as well as the creative industry,” he added.
Meanwhile, Asian Development Bank (ADB) Director General Winfried F. Wicklein emphasized in his closing remarks that “the Philippines is a very important and increasingly thriving member-state of the ASEAN.”
“There has never been a more exciting time to invest in the Philippines,” the ADB Director General concluded.
The Philippine delegation included Department of Agriculture Undersecretary Asis G. Perez, Department of Finance (DOF) Undersecretary Domini SD. Velasquez, Treasurer of the Philippines Sharon P. Almanza, Bangko Sentral ng Pilipinas (BSP) Assistant Governor Zeno Ronald R. Abenoja, and ADB Deputy Director Pavit Ramachandran.
Held on the sidelines of the 58th ADB Annual Meeting, the Philippine Economic Dialogue was moderated by DBM Undersecretary Margaux V. Salcedo.
Also joining Secretary Pangandaman was DBM Principal Economist Dr. Joselito R. Basilio.
The Economic Team likewise engaged in small group meetings with various banks, financial institutions, and other prospective foreign investors in Milan.
The PED was co-organized by the BSP and the DOF, in cooperation with the ADB, the Philippine Embassy in Italy, the Philippine Consulate General in Milan, the Philippine Trade and Investment Center, and the Italian Chamber of Commerce in the Philippines.
