📋 Tender Overview
Project Name
Business and Employment Recovery Program - Subprogram 2
Project Number
55300-002
Country / Economy
Philippines
Project Status
Active
Project Type / Modality of Assistance
Loan
Source of Funding / Amount
Loan 4581-PHI: Post-COVID-19 Business and Employment Recovery Program - Subprogram 2
Ordinary capital resources US$ 500.00 million
Sector / Subsector
Education / Technical and vocational education and training
Public sector management / Economic affairs management
Gender
Gender equity theme
Description
The program supports the Government of the Philippines in building a business environment that fosters sustainable, high-quality jobs, particularly in the aftermath of the coronavirus disease (COVID-19). Subprogram 2 focuses on bridging the gap between skills training and employment, ensuring that the workforce is well-equipped to meet evolving industry needs. By expanding active labor market programs and liberalizing the business and investment framework, the program aims to increase the share of private sector jobs among total employment, significantly above the pre-pandemic level. It also promotes inclusive growth by increasing women's participation in technical and vocational education, providing them with better employment prospects. The program further supports vulnerable youth not in employment, education, or training and workers at risk of losing their jobs by providing them life skills and technical training and connecting them to private sector opportunities. In doing so, it contributes to the country's long-term vision of inclusive and resilient economic growth, as outlined in AmBisyon Natin 2040.
Project Rationale and Linkage to Country/Regional Strategy
Recent economic performance. The Philippine economy rebounded strongly from the severe impact of the COVID-19 pandemic. Following a 9.5% contraction in the gross domestic product (GDP) in 2020, the country rebounded with a 6.3% average growth from 2021 to 2023, largely driven by household consumption and investment. Prospects remain favorable with GDP growth projected at 6.0% in 2024 and 6.2% in 2025, underpinned by broad-based growth in domestic demand. The acceleration in public infrastructure investment will continue to lift growth, while economic liberalization reforms support private investment. Key risks to the outlook include severe climate-related disruptions that could cause upward inflationary pressure, slowdown in major advanced economies, and heightened geopolitical tensions.
Debt sustainability. The Medium-Term Fiscal Framework 20222028 is the government's blueprint to reduce fiscal deficit, promote fiscal sustainability, and enable robust economic growth. It is anchored on additional revenue measures and ongoing reforms to enhance expenditure efficiency. In line with the framework, the fiscal deficit narrowed from an average of 7.9% of GDP during 20202022 to 6.1% of GDP in 2023. The deficit is programmed to further decline to 5.5% of
