The Philippines' economic path in the midst of emerging challenges

THE PHILIPPINES is set to enter 2026 with a measured outlook as economists and policy makers track signs of stable movement in key indicators.

- By Mhicole A. Moral Special Features and Content Writer

The ASEAN+3 Macroeconomic Research Office reported that the country's domestic structure and access to varied export markets supported performance throughout 2025, even as trade tensions overseas created pressure across Asia. Gross domestic product for 2026 stands at 5.3%.

Macroeconomic prospects were among the discussions at the BusinessWorld Forecast 2026 forum held on Nov. 25 with the theme "Seizing New Growth Opportunities Amid Disruptions." Government and private-sector panelists examined how the country can manage volatility while preparing for emerging challenges in the coming year.

Finance Assistant Secretary Neil Adrian S. Cabiles said the government expects both positive and negative outcomes as it adjusts spending plans and works to boost economic confidence.

"We were able to address issues with a long-staged process of increasing funds and projects. [We have] a well-developed consumption. [However,] we have seen lower investment funds, so there is a slightly lower level of investment. What is concerning is that this is happening," he said.

Mr. Cabiles added that the government is taking steps to strengthen investor confidence by improving project selection, public spending performance, and policy stability. To keep projects on track, the Department of Finance revised its cash spending plan and accelerated public spending.

"We have revised the government spending cash plan. We have accelerated this [spending] from June 4, 2025, up to 2026, concentrating more on specific infrastructure. We are making sure that these are really good projects and that there is proper implementation for them," he explained.