Corruption dims PH growth outlook

The infrastructure corruption scandal is expected to weigh on the Philippines’ economic outlook, with growth once again seen falling below the government’s targets this year and in the next two years, after London-based think tank Capital Economics lowered its forecasts in the wake of the controversy.

- By RICARDO M. AUSTRIA

“The ongoing corruption scandal will drag on prospects in the Philippines,” said Capital Economics senior Asia economist Gareth Leather in a Dec. 15 report.

The drag from the corruption scandal has prompted the think tank to cut its Philippine gross domestic product (GDP) growth forecasts to four percent for 2025, 4.5 percent for 2026, and five percent for 2027—well below the government's targets of 5.5 to 6.5 percent for this year and six to seven percent for 2026 to 2028.

To recall, Capital Economics last month cut its 2025 GDP growth forecast for the Philippines to five percent, following a dismal four-percent expansion in the third quarter—the economy’s slowest pace in 4.5 years.