“HONESTLY, THAT’S VERY unlikely now.”
That was the statement of Department of Economy, Planning and Development Secretary Arsenio Balisacan that the Philippine economy, as measured by gross domestic product (GDP), will grow by at least 5.5 percent for full-year 2025.
To recall, third quarter GDP growth came in at a disappointing 4 percent, which was blamed on government withholding infrastructure spending due to the flood control project scandal worth billions of pesos.
To meet the full-year growth target of 5.5 to 6.5 percent, the economy would need to expand by 7 percent in the last quarter, Balisacan said in a briefing.
However, Balisacan acknowledged that reaching this level would be challenging due to recent natural disasters and the ongoing investigation into questionable flood control projects.
He admitted that the probe into anomalous infrastructure projects has had some impact on economic performance, but stressed that domestic fundamentals remain solid. Also, it is crucial to sustain past gains to ensure continued stability.
Balisacan said the inter-agency Development Budget Coordination Committee (DBCC) will meet on Dec. 9 to assess the latest developments and their implications for economic targets.
“We want to ensure that projects—especially those essential to economic recovery and social protection, including post-disaster and post-typhoon initiatives—move quickly,” he said.
“With strong macroeconomic fundamentals and ongoing structural reforms, we are laying the foundation for an economy where investments thrive and progress is broadly felt. Sustaining this path requires credible institutions, transparent governance, and policy environments that foster public trust—because trust is not merely a result of development; it is a prerequisite for it,” Balisacan added.
