'Underperforming' peso to lag peers

The Marcos Jr. administration’s fiscal consolidation efforts following the flood-control fiasco are expected to slow government spending and cap investment outlays in the coming months, weighing on economic growth in both 2025 and 2026.

- By DERCO ROSAL

Singapore-based Oversea-Chinese Banking Corp. Ltd. (OCBC), in its December 2025 research monitor published on Dec. 2, said it anticipates the country’s gross domestic product (GDP) to expand 4.8 percent this year and 5.5 percent next year—far below this year’s growth target of at least 5.5 percent and next year’s goal of at least six percent.

“Economic growth is likely to be impacted in the coming quarters due to a series of public construction scandals,” OCBC said.