Amid global headwinds and internal challenges, including the flood control scandal, the Philippine economy slowed down in 2025, registering a 4.4-percent growth.
This, as fourth-quarter growth also slowed to 3 percent, causing gross domestic product (GDP) in 2025 growth to settle at its lowest point in 14 years, according to the Philippine Statistics Authority (PSA).
Last year’s GDP growth was at 5.7 percent.
The impact of the flood control scandal cannot also be ignored, as third quarter GDP growth was also disappointing at 3.9 percent.
Department of Economy, Planning and Development (DEPDev) Secretary Arsenio Balisacan attributed the economic slowdown to weather- and climate-related disruptions, issues surrounding anomalous flood control projects, and global economic uncertainties, which dampened construction activity and private consumption.
Balisacan said domestic demand growth slowed to 0.7 percent in the fourth quarter, while full-year expansion reached 3.7 percent.
He said a return to at least 5 percent GDP growth is possible by the second quarter, noting that achieving the full-year target would require growth to reach that level by then.
“That’s the goal anyway, to go to the 5 to 6 percent for the entire year. On exactly what month or quarter, it’s something definitely I couldn’t say but, yes, to be able to go to 5 to 6 percent, you have to grow 5 percent by Q2 (second quarter),” he said.
Balisacan stressed the need to restore investor and consumer confidence through governance reforms, stronger accountability, improved project quality, and better use of public funds.
He also cited the importance of improving disaster preparedness, early warning systems, and the capacity of the state weather bureau.
For infrastructure, he said the government will accelerate the completion of ongoing projects while strengthening anti-corruption safeguards to support economic recovery and achieve more sustainable growth.
“These reforms protect public funds, strengthen our institutions, build a more resilient, inclusive economy, and ultimately, rebuild trust between government and the people we serve,” Balisacan said.
PNA PHOTO