November 11, 2025 | 1:22pm
MANILA, Philippines — Following a record low, the Palace remained optimistic that the country’s gross domestic product (GDP) will improve in the last quarter of 2025.
The country’s GDP slowed to 4.0% in the third quarter — the lowest since the COVID-19 pandemic. The Department of Economy, Planning, and Development (DEPDev) had affirmed that the economic drag was due to the ongoing flood control corruption scandals.
Citing the Department of Budget and Management, Palace Press Officer Claire Castro said that the holiday season will spur on spending, as well as a growth in exports.
Castro said that there will also be an increase in government spending, especially with the P1.307 trillion worth of programmed funds that is set to be released to various government agencies in the final quarter of the year.
The 1.307 trillion will be divided accordingly for disaster response, social welfare, education and more.
President Ferdinand Marcos Jr. has ordered the proper use of these funds, Castro said.
“This will help the business sector see that the government is spending money correctly, and this would boost the economy, consumption, and investments,” Castro said in Filipino.
Asked if the country can still hit its economic growth target for the year despite the corruption woes and the back to back typhoons, Castro said that the Palace was optimistic.
“The belief is there. We will be able to do this,” Castro said.
The government’s target for annual GDP growth is at least 5.5%.
Should the Marcos administration fail to hit its annual growth target, it will be the third year in a row that the government missed its goals.
DEPDev Arsenio Baliscan had noted that the government must improve the way it spent money, especially amid the massive corruption scandal. The drag in the GDP was exacerbated by the slowdown in public construction, with the Department of Public Works and Highways suspending dozens of projects during the corruption probe.
Consumer confidence has also been impacted by the flood control probes, with many people opting to postpone purchasing goods.