DBCC seen to trim growth goals

THE SHARP slowdown in government spending tied to the widening flood control corruption scandal is pushing the Philippines to cut its medium-term growth goals, with the Development Budget Coordination Committee (DBCC) likely to trim its 2026 target to 5-6%, Executive Secretary and former Finance Secretary Ralph G. Recto said.

- Aubrey Rose A. Inosante

"Realistically, for next year, it will be from 5-6%. Because we're coming from a low base," Mr. Recto told reporters on the sidelines of a Senate hearing on Nov. 17.

"(The growth) will take some time, maybe a quarter, before we can go back to the regular growth rate," he added.

In June, the DBCC tempered its growth forecast to 5.5-6.5% for 2025 and 6-7% for 2026-2028, mainly due to “heightened global uncertainties” arising from the Middle East conflict and US tariffs.

However, in the first nine months of the year, gross domestic product (GDP) growth only averaged 5% after the weaker-than-expected 4% growth in the third quarter, reflecting the slowdown in public spending and household consumption.

“Our fundamentals are okay. The only thing is to regain the trust and confidence of our consumers, of our businessmen, and the only way we can do that is to show accountability,” he said.