MANILA: The Philippines posted below-expectations economic growth of just 4.4% on Thursday, marking the country’s lowest non-pandemic growth in nearly 15 years. Analysts attributed the slowdown to a corruption scandal and climate-related disruptions.
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The GDP figure came in well below June’s downgraded projection of 5.5–6.5%, which had already factored in US tariffs and global uncertainties. Fourth-quarter growth plunged to 3.0% from 5.3% a year earlier, marking the second consecutive quarter of missed targets.
Economic Planning Secretary Arsenio Balisacan told reporters that weather and climate-related disruptions had reduced domestic demand, with workdays lost and schools closed.
“A spiralling corruption scandal also weighed heavily on business and consumer confidence,” he said, referring to investigations into bogus infrastructure projects.
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Construction spending has sharply declined following revelations of so-called ghost flood control projects, which President Ferdinand Marcos highlighted in a July address. Numerous officials, lawmakers, and construction firm owners have been implicated in fraud, allegedly costing taxpayers billions of dollars.
Despite the challenges, Balisacan said ongoing reforms are expected to spur a recovery in 2026.
“The resulting measures and governance reforms are necessary to strengthen accountability, improve project quality, ensure better value for scarce public resources, and build our capacity for faster and more sustainable growth in the years ahead,” he said.
-freemalaysiatoday