The Philippine economy recorded a very disappointing 4-percent growth in the third quarter of this year, way below expectations amid the ongoing probe on graft in government infrastructure projects.
“The productive capacity that we had wanted to happen was muted by all this corruption,” said Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan at a press briefing.
“It’s just so shocking to see how extensive it was,” he added.
Balisacan added that the slower expansion of the economy in the third quarter can be attributed to the impact of measures aimed to address anomalies in government infrastructure projects and the effects of weather disturbances on economic activities, among others.
These factors, he said, “reflect and affect consumer and business expectations and provide a clear signal for the government to act boldly and decisively.”
“While we may not be able to fully recover the economic losses within the year, we believe these are temporary setbacks. With sustained interventions and improved resilience, we expect the economy to rebound in 2026,” he added.
Balisacan also cited the need for greater contribution of the private sector in the fight against corruption since this goal needs a whole-of-society effort.
The average GDP growth to date stands at 5.49 percent, below the government’s 5.5 percent to 6.5 percent target band for the year.
Balisacan said that measures are in place to rebuild consumer and business confidence and help the domestic economy achieve its potential growth following the weaker-than-expected performance in the third quarter of 2025.
These measures include fast-tracking the implementation of social and financial aid for disaster-hit facilities and communities to bolster economic activities.
Balisacan cited as crucial the pursuit of free trade agreements with the United Arab Emirates, Chile, the European Union, and Canada; the full implementation of the Regional Comprehensive Economic Partnership (RCEP); prioritization of underutilized programs; full utilization of this year’s national budget; and pursuit of legislative measures and operational reforms to address issues on governance and ensure efficient financial management.
PNA PHOTO