'Politics, trade woes weigh down growth'

Corruption issues, disasters, tariffs limit economic momentum

- By MARCO LUIS BEECH

Allegations of corruption in flood control projects and global trade tensions weighed on Philippine economic growth in 2025, underscoring the need for stronger governance and transparency to restore investor confidence in 2026, economists said.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said geopolitical tensions were among the biggest factors weighing on the economy this year, even as stronger anti-corruption measures have yet to be realized to rebuild investor confidence.

"Anti-corruption measures or reforms and policy priority of further improvement in governance standards must be taken seriously, as these remain the missing link to boost confidence among investors in the economy and financial markets," he said.

Ricafort added that political noise, weather disruptions and earthquakes have been the major catalysts this year, including US President Donald Trump's higher tariffs, trade wars and protectionist measures.