Corruption slows economic growth

Lingering corruption issues in the Philippines could push economic growth below five percent in 2025 and 2026, according to the Washington-based Institute of International Finance (IIF).

- BY BEN ARNOLD DE VERA

In a Dec. 4 report, a copy of which was obtained by Manila Bulletin, the IIF slashed its gross domestic product (GDP) growth forecasts for the Philippines to 4.7 percent for 2025 and 4.8 percent for 2026.

As Manila Bulletin reported in June, the global financial industry association had projected Philippine growth at 5.5 percent this year and 5.6 percent next year—weaker than last year's 5.7 percent.

The IIF's downgraded projections are well below the government's already downscaled targets of 5.5 to 6.5 percent for 2025 and six to seven percent for 2026.

Among the eight Asia-Pacific emerging markets (EMs) covered by the IIF report, its growth forecasts for the Philippines were surpassed by Vietnam, India, Indonesia, and China.

Vietnam, for instance, is seen leading the region with projected economic growth of 7.9 percent in 2025 and 7.1 percent in 2026.