Philippines to miss GDP growth target for 3rd year in a row

THE PHILIPPINES is unlikely to hit even the low end of the government's growth target this year, as bad weather and a corruption scandal weigh on economic activity, Department of Economy, Planning, and Development (DEPDev) said on Monday.

- Aubrey Rose A. Inosante

Economy Secretary Arsenio M. Balisacan conceded that this year's 5.5-6.5% gross domestic product (GDP) growth target is out of reach.

"Honestly, that's very unlikely now. We need to grow roughly 7% in the fourth quarter to achieve a 5.5% growth for the year. Given the situations and data that are coming out, that's quite unlikely," he said in a yearend press chat.

This will be the third straight year that the Philippines will miss its GDP growth target.

Mr. Balisacan said the Development Budget Coordination Committee (DBCC) is set to meet on Dec. 9 to review the macroeconomic assumptions and targets.

"Our DBCC is meeting to assess the situation, particularly given the recent developments in the thirdquarter performance and what's emerging in the fourth quarter.

Those will be taken into account in setting a target for 2026," he said. The Marcos administration has been under pressure after a corruption scandal involving public works projects has dampened gov ernment spending and shaken investor and consumer confidence.

Third-quarter GDP grew by 4%, the slowest in over four years, bringing the nine-month average to 5%.

Last month, S&P Global Ratings cut its 2025 growth forecast to 4.8%, while the ASEAN+3 Macroeconomic Research Office trimmed its projection to 5.2%.

Mr. Balisacan said he is hoping the economy has seen the worst in the third quarter as President Ferdinand R. Marcos, Jr. instructed agencies to ramp up their spending.