Protect Middle Class to Prop Up Growth, Says ADBI

The Asian Development Bank Institute (ADBI) has urged the Philippine government to protect the purchasing power of the middle class through targeted aid to prevent weaker household consumption from dragging down economic growth. Speaking to reporters, ADBI dean and CEO Bambang Brodjonegoro emphasized that the middle class accounts for most household consumption, making targeted support crucial. The Philippine economy faces the risk of sluggish household consumption hindering its growth. The middle class, with its significant spending power, is vital in supporting the economy. A decline in their purchasing power could further dampen overall economic momentum. ADBI's recommendation underscores the need for concrete policies to stabilize the economy amidst these challenges. Factors such as inflation and global economic uncertainties are currently pressuring households in the Philippines. Targeted assistance for the middle class is expected to stabilize consumption of essential goods like food and daily necessities, thereby boosting domestic economic circulation. This is particularly important for the Philippines, where the service sector, represented by the Business Process Outsourcing (BPO) industry, forms a major pillar of the economy.