Malaca±ang: Malaca±ang on Tuesday expressed confidence that the Philippine economy will recover in the fourth quarter of 2025, citing the anticipated increase in private holiday spending and exports, as well as the prudent use of the PHP 1.307-trillion programmed budget.
According to Philippines News Agency, Palace Press Officer Claire Castro acknowledged that the slowdown in economic growth in the third quarter of 2025 could be attributed to the adverse impact of recent calamities and the controversies surrounding the country’s flood control projects. Castro stated in a Palace press briefing, “Pero ayon sa forecast, gaganda naman po at mag-i-improve ang ating economic growth nitong last quarter of the year (But according to the forecast, our economic growth is expected to improve and perform better in the last quarter of the year).”
The country’s economic growth dropped to 4 percent in the third quarter of 2025, slower than the 5.5 percent recorded in the second quarter and the 5.2 percent growth posted in the same period last year, data from the Philippine Statistics Authority (PSA) showed. This also marked the lowest growth since the 3.8-percent contraction in the first quarter of 2021 during the Covid-19 pandemic.
Castro said President Ferdinand R. Marcos Jr. has ordered the proper utilization of programmed appropriations to help spur economic growth. She added that the multi-trillion-peso programmed appropriations will be used to strengthen the infrastructure, health, and education sectors, as well as to fund assistance for disaster-stricken communities.
“Ang utos ng Pangulo ay gamitin sa tama ‘yung PHP1.307 trillion na programmed budget para po makita ng business sector na ang gobyerno ay gumagastos sa tama at ito po ay makapagpapalago ng ekonomiya (The President’s directive is to use the PHP1.307-trillion programmed budget properly so that the business sector can see that the government is spending wisely, which will, in turn, help boost the economy),” Castro said.
Most of the released programmed appropriations will be allocated for social services for the rest of 2025, driving a ‘multiplier effect’ on the economy.
