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Rappler Business

[Vantage Point] The dangerous religion of growth

We ought to stop worshipping GDP. It does not capture true prosperity, long-term sustainability, or actual human flourishing.

Context & Analysis

Philippine policymakers and corporate boards have long treated gross domestic product as the ultimate scoreboard. For decades, the Bangko Sentral ng Pilipinas, NEDA, and listed conglomerates have calibrated monetary policy, infrastructure spending, and capital allocation around expansion targets. That framework made sense when the priority was catching up after years of stagnation. But measuring success purely by output volume leaves blind spots. It ignores how wealth is distributed, whether supply chains can withstand climate shocks, and if household balance sheets are actually strengthening.

For Filipino business owners and investors, the shift away from growth-at-all-costs is already reshaping capital markets and regulatory expectations. The Securities and Exchange Commission has been tightening disclosure standards around environmental and social risk, while the Department of Trade and Industry pushes for localized, resilient value chains. Companies that chase top-line expansion without reinvesting in workforce development, energy efficiency, or debt management often face higher financing costs and thinner margins when global rates shift. Consumers, meanwhile, are voting with their wallets toward durable goods and services that deliver real utility rather than short-term consumption spikes.

The real test will be whether local institutions and private firms adjust their internal scorecards. Watch for annual reports that weigh capital productivity, employee retention, and supply chain resilience alongside revenue growth. Pay attention to how the BSP and NEDA frame monetary and fiscal guidance, specifically whether they continue to prioritize headline expansion or explicitly factor in distributional equity and climate adaptation. Businesses that treat sustainability as a compliance checkbox will fall behind. Those that align growth with measurable improvements in human capital and operational durability will secure cheaper capital, stronger customer loyalty, and clearer regulatory tailwinds in the years ahead.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: rappler.com

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