PHL may grow below target until 2027

THE PHILIPPINE ECONOMY is expected to miss the government's growth targets this year until 2027, the Organisation for Economic Co-operation and Development (OECD) said.

- By Aubrey Rose A. Inosante Reporter

In its latest Economic Outlook on Tuesday, the OECD has slashed its Philippine gross domestic product (GDP) growth forecast to 4.7% for this year from 5.6% in its June report.

The OECD also trimmed its GDP growth forecast to 5.1% for 2026 from 6% previously. It sees the economy growing by 5.8% in 2027.

These projections are below the government's 5.5-6.5% growth goal for this year and the 6-7% target for 2026 to 2028.

"The corruption scandal has actually already weighed on economic activity in the third quarter of 2025. The channel through which it has weighed on activity is public construction, which has collapsed in the third quarter," OECD economist Cyrille Schwellnus said at a separate briefing on Wednesday.

Philippine GDP grew by a weaker-than-expected 4% in the third quarter, bringing nine-month growth to 5%. This, as household final consumption expenditure and government spending slowed amid the corruption mess.

"This lower growth will bring down annual growth for 2025, but also annual growth for 2026," he added.

Mr. Schwellnus noted that the growth projections assume that the corruption scandal will be resolved relatively quickly, along with more transparent public procurement. But it is uncertain how quickly public investment and investor confidence will rebound, he added.

Based on the OECD's latest Economic Outlook, the Philippines will be the fourth fastest-growing economy in Southeast Asia this year, after Vietnam (8.2%), Malaysia (5%) and Indonesia (5%).