MANILA — The Philippine economy remains on solid ground, even amid governance concerns, structural shifts, and political noise, according to Department of Economy, Planning, and Development (DepDev) Secretary Arsenio Balisacan.
In a statement on Thursday, Balisacan acknowledged that the administration is facing governance challenges but stressed that the country’s economic trajectory remains firm, supported by long-term reforms and structural strengths.
“The Philippine economy remains strong despite recent governance challenges and continuing global uncertainties,” he said. “Amid political noise and global headwinds, the economy continued to expand. Although growth moderated to 4.0% in the third quarter, full-year growth for 2025 has so far averaged 5.0%. International institutions project a 5.7% growth rate for 2026.”
The comments come after a shakeup in the Marcos Cabinet, including the departures of Executive Secretary Lucas Bersamin and Budget Secretary Amenah Pangandaman. The statement also follows high-profile political tensions, including allegations from Senator Imee Marcos accusing President Ferdinand “Bongbong” Marcos Jr. and the First Family of drug use — claims Malacañang has denied.
Despite these challenges, Balisacan highlighted the country’s strong economic fundamentals:
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Sustained growth and easing inflation
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A healthy labor market
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Manageable fiscal deficit and public debt
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Stable currency and external position
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A robust banking system
Latest government data shows inflation steady at 1.7% in October — below the central bank’s 2%-4% target range. The number of unemployed Filipinos fell to 1.96 million in September from 2.03 million in August, while sovereign debt eased slightly to P17.455 trillion.
Balisacan also pointed to structural strengths driving potential growth: a robust labor force, steady capital investment, productivity gains, and ongoing technological progress. These factors, he said, put the country on track for at least 6% annual growth.
The inter-agency Development Budget Coordination Committee (DBCC) expects GDP growth to range between 5.5% to 6.5% for 2025, and 6% to 7% from 2026 to 2028.
“The government will continue to deploy fiscal, monetary, financial, technological, and social-protection policies, alongside key legislative measures, to keep growth aligned with potential,” Balisacan said. “We have also been laying down the necessary investments to future-proof the economy amid environmental, technological, and geopolitical disruptions.”
Echoing Balisacan, former Finance Secretary and now Executive Secretary Ralph Recto emphasized that the Philippines is on solid economic footing, and good governance remains stronger than ever.
Even with political turbulence and global uncertainties, the message from the nation’s top economic officials is clear: the Philippine economy is resilient, prepared, and ready to keep moving forward.
