Philippine government cuts growth targets until 2028

By Chloe Mari A. Hufana, Reporter 

The Philippines trimmed its economic growth targets through the end of President Ferdinand R. Marcos Jr.’s term in 2028 after growth likely slowed to about 4.8% to 5% this year, according to Economy Secretary Arsenio M. Balisacan.

In a briefing on Monday, Mr. Balisacan said the Development Budget Coordination Committee (DBCC) had lowered its gross domestic product (GDP) growth targets to 5%-6% for 2026, 5.5%-6.5% for 2027, and 6%-7% for 2028.

The government earlier aimed to achieve 6%-8% GDP growth annually from 2026 until 2028.

This comes after Mr. Balisacan said the economy likely grew by 4.8-5% in 2025. This is much slower than the 5.7% GDP growth in 2024, and below the government’s 5.5-6.5% growth target.

“The emerging number, growth scenario for 2025, is something like 4.8 to 5%,” he said. “But if you achieve 5% for the entire year, because the first three quarters’ average is already 5%, that still puts the economy into one of the fastest growing economies in Asia.”

Economic growth slowed to an over four-year low of 4% in the third quarter, as the flood control scandal affected government spending and hurt business and consumer confidence.

“The developments last year are likely still to be felt this year, although in a diminishing effect, and so we expect growth perhaps in the first quarter or at least in the first half to be still quite not as rosy as we would want it to be,” the Economy chief added.

Mr. Balisacan said the economic team is still expecting consumption to drive the economy despite massive budget cuts for infrastructure projects, specifically on flood control plans.

“Consumption is likely going to be still supported by employment, growth and employment and remittances. But we will also expect the rebound of consumer confidence… We do expect that the broad economy will grow as sufficiently strong especially toward the second half,” he