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DEPDev chief Arsenio Balisacan expects the Philippine economic system to have grown simply 4.8% to five% final yr
MANILA, Philippines – The Growth Finances Coordination Committee (DBCC) additional trimmed the nation’s financial progress targets for the rest of the Marcos Jr. administration because the economic system continues to reel from the consequences of the flood management corruption scandal.
Throughout a Malacañang press briefing on Monday, January 5, Division of Financial system, Planning and Growth (DEPDev) Secretary Arsenio Balisacan mentioned the P6.793-trillion 2026 nationwide funds will have the ability to assist develop the Philippine economic system by 5% to six%. That is decrease than the DBCC’s earlier goal of 6% to 7%.
Balisacan additionally mentioned the economic system is anticipated to develop 5.5% to six.5% in 2027 and 6% to 7% in 2028, decrease than the DBCC’s projected 6% to eight% progress for each years. The changes have been made throughout the DBCC’s assembly in December 2025.
The DEPDev chief cited the consequences of worldwide commerce uncertainties and the general public works corruption scandal on the Philippine economic system.
Uncovered corruption in flood management initiatives induced authorities infrastructure spending to tumble to a 14-year low within the third quarter of 2025 because the Division of Public Works and Highways carried out stricter validation measures. Corruption considerations additionally tempered enterprise and shopper confidence as Filipinos held again on buying sturdy items.
The Philippine economic system grew simply 4% within the third quarter, with common progress for 2025 at simply 5%. Balisacan mentioned they anticipate the economic system to have grown simply 4.8% to five% final yr.
Balisacan additionally defined that the economic system will proceed to really feel the consequences of the diminished belief in governance this yr, with progress anticipated to rebound within the second half.
“We anticipate progress maybe within the first quarter to be or at the very least within the first half [of 2026] to be nonetheless fairly not as rosy as we’d need it to be. However I feel that with the enhancements within the methods that we’re putting in as mirrored within the funds and within the varied places of work, we anticipate to see sooner progress towards the second half and the succeeding years,” the nation’s chief economist defined.
Balisacan mentioned consumption spending has been the primary driver of financial progress prior to now few years, contributing about 75% of gross home product (GDP) progress. He expects consumption to rebound this yr on the again of rising employment and remittances, in addition to gradual inflation and low rates of interest.
The World Financial institution barely downgraded its progress forecast for the Philippines this yr to five.3% from 5.4%, whereas Fitch Options unit BMI maintained its projected progress at 5.2%. – Rappler.com
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