Credible reform crucial to 2026 economic rebound

Both President Marcos and Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona have expressed confidence that the Philippine economy will regain stronger momentum by 2026.

- 

Their message of optimism comes at a time when the nation is grappling with an intricate web of economic stresses: persistent inflationary pressures, unsettled investor confidence, global uncertainty, and a drag on public spending linked to the ongoing flood-control corruption investigations.

The question is not whether the Philippines can rebound; history shows that it can. It is whether the policy and governance environment will allow this rebound to materialize at the speed and scale the nation needs.

To its credit, the Philippines retains key fundamentals that support a medium-term recovery. Remittances remain resilient, the labor market is expanding, and the country's demographic dividend continues to provide a strong base for consumption.

Yet consumption cannot propel growth indefinitely, especially if households remain squeezed by higher prices for food, utilities, and transport. The policy challenge is to ensure that inflation is decisively tamed while supporting demand and restoring confidence in the government's capacity to spend effectively and honestly.