Corruption to weigh on growth until '27

PHILIPPINE ECONOMIC GROWTH may continue to undershoot the government's targets until 2027 amid the ongoing flood control corruption scandal, Capital Economics said.

- - Katherine K. Chan

In a report on Monday, the think tank said it projects gross domestic product (GDP) growth to settle at 4% this year, well below the government's 5.5-6.5% target.

Capital Economics sees Philippine GDP to gradually pick up to 4.5% in 2026 and 5% in 2027. However, these are still below the country's 6-7% targets.

"The corruption scandal that has engulfed the Philippines will continue to weigh on growth over the coming quarters and is likely to trigger a few more rate cuts from the BSP," Capital Economics Senior Asia Economist Gareth Leather said in a report on Monday.

Meanwhile, ANZ Research sees the Philippine economy expanding by 4.8% this year as the National Government continues to tighten its belt amid the ongoing probe into public infrastructure projects.

In its ANZ Research Quarterly for Q1 2026, it trimmed its GDP growth estimates for the Philippines to 4.8% for 2025 from 4.9% previously.