The World Bank Group's Board of Executive Directors has endorsed a new Country Partnership Framework (CPF) for the Philippines, spanning 2026 to 2031. The framework emphasizes investments in key areas such as health, education, private sector job creation, digitization, and economic resilience.
This CPF aligns with the Philippines' development objectives by focusing on urgent 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," stated Manuela V. Ferro, Vice President of East Asia and Pacific at the World Bank.
The Philippine economy is approaching upper-middle-income status with increased dynamism over recent years. The average annual real GDP growth rose from 3.7 percent between 1990-2010 to 5.2 percent from 2010-2024, while per capita income growth increased from 1.5 percent to 3.5 percent annually.
Since 2010, the country has generated an additional 11.7 million jobs with a corresponding real wage increase of 24 percent. This growth, alongside remittances, reduced poverty rates from 18.1 percent in 2021 to 15.5 percent in 2023 and narrowed regional income disparities.
Despite these advancements, access to essential services like water sanitation remains limited for millions of Filipinos who also face quality education and healthcare challenges. Additionally, over 70 percent of the population is susceptible to weather-related hazards impacting growth and livelihoods.
Zafer Mustafaoğlu, World Bank Division Director for the Philippines, Malaysia, and Brunei noted that "Investing in the capacity of local governments is critical for improving access to quality public services." These investments are intended to enhance human capital development and foster resilient communities.
The CPF represents a collective strategy involving several arms of the World Bank Group: the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), which focuses on private sector support; and Multilateral Investment Guarantee Agency (MIGA), providing political risk insurance.
Kim-See Lim, IFC Regional Director for East Asia and Pacific commented that "A vibrant and dynamic private sector is crucial for the Philippines to achieve its next stage of development." IFC aims to improve business finance access while promoting innovation in productivity and infrastructure investment.
To implement this CPF effectively, financial support will be provided by WBG including long-term IFC backing throughout its duration while MIGA seeks cross-border investment opportunities.