Socioeconomic Planning Secretary Arsenio Balisacan expressed confidence that the Philippines could still achieve its 2025 growth goal despite fears that recent corruption scandals and slower state spending could drag down the economy.
“The low end of the range is very much achievable,” Balisacan told reporters Thursday, referring to the government’s 5.5–6.5 percent growth target for the year.
The Bangko Sentral ng Pilipinas (BSP) earlier warned that the target might be missed following revelations of irregularities in flood control projects, which disrupted infrastructure spending. Finance Secretary Ralph Recto also said growth could dip further this year and “possibly until next year” as government disbursements slowed.
Balisacan acknowledged that the controversy had shaken investor confidence and surprised development partners, but he remained optimistic. “As a result of this, we can put our house into better order,” he said. “We can put in reforms… to establish a better foundation for long-term growth.”
He noted that easing inflation and lower interest rates could help offset short-term setbacks, even if the third quarter experiences slower expansion due to typhoon damage and supply shocks. If the economy falls short of the 5.5 percent goal, he said the gap would be minimal—“just by 0.1 to 0.2 percent.”
Recto earlier estimated that the economy could have grown by 6 to 6.2 percent “if part of the budget hadn’t been lost to corruption.”
The BSP, meanwhile, recently cut policy rates by 25 basis points to stimulate activity. Deputy Governor Zeno Abenoja admitted that growth might come in “slightly below” projections depending on how infrastructure spending unfolds.
BSP Governor Eli Remolona Jr. said the economy had underperformed largely because “what we thought was going to investment wasn’t going there at all,” citing governance problems in project implementation.
