BSP cites drag from souring confidence

The Bangko Sentral ng Pilipinas (BSP) now expects the Philippine economy to expand below five percent this year, citing the erosion of investor confidence stemming from concerns over the governance of the government's flood-control funds.

- By DERCO ROSAL

BSP Governor Eli M. Remolona Jr. told reporters on the sidelines of a central bank event on Wednesday, Dec. 3, that gross domestic product (GDP) growth could reach four to five percent this year.

Growth averaged five percent in the first three quarters of 2025, significantly missing the government's goal of at least 5.5 percent.

Remolona attributed the expected moderation primarily to a “loss of confidence among investors.” He added that a further drag on growth this year was the government's tighter spending, part of an effort to review existing and allegedly anomalous flood-control projects.