Philippine Economic Growth Slows Amid Corruption Scandal and Weak Investment
- brg_news_room
- Nov 11
- 1 min read
Philippines: The Philippine economy expanded by 4% year-on-year in the third quarter, falling short of market expectations of 5.2% and the 5.5% growth recorded in the previous quarter, according to the National Statistics Agency. The slowdown has been linked to an ongoing corruption scandal involving government infrastructure projects, which has affected investor and consumer confidence. Economic Planning Secretary Arsenio Balisacan stated that meeting the government’s annual growth target of between 5.5% and 6.5% would now be challenging, citing the impact of mismanagement and alleged misuse of public funds allocated for flood control and other infrastructure initiatives.
Government expenditure increased by 5.8% year-on-year, the lowest growth since the same period in 2024, while infrastructure investment declined by 26.2%, marking its weakest performance in nearly 14 years. Household consumption, which accounts for a significant portion of the economy, rose by only 4.1% between July and September, its slowest pace since 2021. Authorities have launched investigations into the alleged irregularities in public spending as the country faces mounting pressure to restore fiscal discipline and regain investor confidence.
Source: Nova News
