DBM chief optimistic holiday spending will lift Q4

THE PHILIPPINE economy is expected to accelerate in the fourth quarter, driven by holiday spending, exports, and a rebound in investment activity, Budget Secretary Amenah F. Pangandaman said, but flagged risks from natural disasters.

- By Aubrey Rose A. Inosante Reporter

However, some analysts are skeptical ofafourth-quarterboost as state spending and household consumption are dampened by the corruption scandal.

Ms. Pangandaman, who also chairs the Development Budget Coordination Committee, said the government sees gross domestic product (GDP) growth picking up in the final stretch of 2025.

“(This will be) driven by private holiday spending and supported by government programs, as well as growth in exports and capital outlays,” she told Business Worldin a Viber message on Monday.

The economy slowed to 4% in the third quarter from the 5.5% expansion in the second quarter and 5.2% a year ago. This came as the corruption scandal stalled public construction and dampened consumer and investor sentiment.

For the first nine months of the year, GDP growth averaged 5%, slower than 5.9% in the same period last year.

Ms. Pangandaman said she anticipates a rebound in gross capital formation, the investment component of the economy, in the fourth quarter, after it contracted by 2.8% in the third quarter.