Manila: Malaca±ang announced that the government is implementing reforms to support economic growth despite recent downward revisions in the Philippines' growth outlook for 2025 and 2026 by several international financial institutions. Palace Press Officer Claire Castro noted that the government is aware of the revised forecasts by the Asian Development Bank, World Bank, S and P Global, and the ASEAN+3 Macroeconomic Research Office (AMRO) ahead of the release of the full-year 2025 gross domestic product (GDP) figures.
According to Philippines News Agency, Castro acknowledged that these revisions reflect global uncertainties, tighter financial conditions, and a moderation in domestic activity observed in the third quarter of this year. She mentioned that the Philippine economy still posted a 5.0 percent growth in the first three quarters of 2025, although more prudent government spending-particularly on infrastructure-affected growth in the fourth quarter amid an investigation into anomalous flood control projects.
Despite these challenges, she assured that the medium-term growth trajectory remains intact, with economic expansion expected to rebound gradually starting in 2026 and strengthen further as growth-enhancing reforms take effect. Castro revealed that the Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan is expected to issue a separate statement on the matter following the official GDP report.
In response to questions about the administration missing its GDP growth target for the fourth time under President Ferdinand R. Marcos Jr., Castro stated that the President remains committed to pursuing investigations into questionable flood control projects, even if these have affected economic activity. She also cited successive natural disasters, such as earthquakes and floods, as additional factors impacting the country's economic growth.
Castro emphasized the President's directive to improve government plans to generate more jobs, increase income, and boost tourism. She highlighted that the GDP report attributed the slowdown in growth to lingering geopolitical tensions and the impact of the flood control issue on disbursements and investments.
She expressed confidence that ongoing reforms in budgeting, disbursement, and project monitoring, along with investor-friendly policies and sound macroeconomic fundamentals, are expected to support stronger growth moving forward. Castro mentioned that once these reforms take hold, better GDP growth is anticipated in the coming periods.
Citing then Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go, Castro said that President Marcos aims to attract more investments to generate quality jobs, raise employment, and reduce poverty. She also assured the public that inflation is under control.
Despite the economic impact of the investigations, Castro reiterated the administration's commitment to addressing corruption, stating that there is a need to cleanse the country of corruption and hold those responsible accountable.
