Manila, Philippines – Full-year economic growth in 2025 was below expectations, an economic minister of President Ferdinand Marcos, Jr. said on Thursday, Jan. 29, in part because of the fallout from a corruption scandal that hurt business confidence and private consumption.
Data released by the Philippine Statistics Authority (PSA) showed the economy expanded by just 4.4 percent, missing the economic team’s target range of 5.5 to 6.5 percent and more than a percentage point lower from 5.7 percent in 2024.
“Admittedly the flood control scandal also weighed on business and consumer confidence,” Socioeconomic Planning Secretary Arsenio Balisacan told a press briefing.
“Public and private construction as well as private consumption were particularly affected during this period” he said.
The fallout from the corruption controversy spilled over in the fourth quarter gross domestic product print where growth was at its weakest in nearly 15 years, or since 2011, at 3 percent.
The bombshell revelations first surfaced in September when contractors involved in flood control projects that never existed or were never completed disclosed the corruption scheme that dragged senators, representatives, and public works officials.
The economy is unlikely to regain lost momentum until the first half as business and consumer confidence would still be reeling from the fallout, combined with global uncertainties, Balisacan said.
Already, the economic team has cut its growth target for 2026 to a revised range of 5 percent to 6 percent from 6.5 percent previously, give or take a percentage point.
As a catch-up plan after public works were stalled late last year, the administration has frontloaded its public spending for the first half.
Balisacan said the Budget department has already released the notice of cash allocation (NCA), a cash authority allowing state-run agencies to withdraw funds from the Bureau of the Treasury.
“For those that are ready to implement, we are accelerating their implementation ensuring that they get the funding as fast as they can,” the economic minister said.
“We are assured by DBM as of this week that the NCAs for the year especially for the first half have been released so the agencies could spend. You must be aware that Congress is delayed in approving the budget so the preparation for release circulars was correspondingly delayed.
Nonetheless, we are having this accelerated,” he added.
