Socioeconomic Planning Secretary Arsenio Balisacan said the Philippines’ 2025 economic growth target remains achievable despite concerns over slowed government spending caused by recent corruption controversies.
“The low end of the range is very much achievable,” Balisacan told reporters, referring to the government’s 5.5%–6.5% growth target. While he acknowledged that the flood control project scandal could temporarily dampen business and consumer confidence, he said the government viewed the situation as an opportunity to introduce reforms and strengthen institutional processes for sustainable growth.
Balisacan said a slight slowdown in the third quarter was likely due to supply shocks and typhoon disruptions but added that easing inflation and lower interest rates could offset these effects. He maintained that even if growth fell short of the 5.5% target, the miss would be marginal — “just by 0.1 to 0.2 percent.”
Finance Secretary Ralph Recto and the Bangko Sentral ng Pilipinas (BSP) have issued more cautious forecasts, citing weaker state spending and governance issues in infrastructure projects. The BSP recently cut key interest rates by 25 basis points to support recovery. Balisacan, however, expressed confidence that reforms underway would restore stability and sustain growth momentum into next year.
2025 Growth Target ‘Still Achievable’ Despite Spending Slowdown — Balisacan
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