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1、ExecutiveSummaryRecent Economic&Policy DevOutlook&RiskPhilippine SMEs and global value chains1.11.43.11.21.52.22.11.31.62.33.23.33.43.5Small Business,Big Impact:Catalyzing Philippine GrowthPHILIPPINES ECONOMIC UPDATEJune 2025 EditionPhoto:World BankPublic Disclosure AuthorizedPublic Disclosure Autho

2、rizedPublic Disclosure AuthorizedPublic Disclosure AuthorizedExecutiveSummaryRecent Economic&Policy DevOutlook&RiskPhilippine SMEs and global value chains1.11.43.11.21.52.22.11.31.62.33.23.33.43.5The Philippines Economic Update(PEU)summarizes key economic and social developments,important policy cha

3、nges,and the evolution of external conditions over the past six months.It also presents findings from recent World Bank analyses,situating them in the context of the countrys long-term development trends and assessing their implications for the countrys medium-term economic outlook.The update covers

4、 issues ranging from macroeconomic management and financial-market dynamics to the complex challenges of poverty reduction and social development.It is intended to serve the needs of a wide audience,including policymakers,business leaders,private firms and investors,and analysts and professionals en

5、gaged in the social and economic development of the Philippines.The PEU is a biannual publication of the World Banks Economic Policy(EP)Global Practice(GP),prepared in partnership with the Finance,Competitiveness and Investment(FCI);Poverty;and Social and Protection Global Practices.Lars Christian M

6、oller(Practice Manager for the EP GP)and Gonzalo Varela(Lead Economist and Program Leader)guided the preparation of this edition.The team consisted of Jaffar Al-Rikabi(Senior Economist and Task Team Leader),Remrick Patagan(Economist),Kevin Cruz(Economist),Chenyu Mao(Young Professional),Patrizia Bene