The Philippines lowers GDP growth forecast for this year and next year, as the impact of corruption scandals continues in the first half

The Philippines has lowered its economic growth target for this year. After President Ferdinand Marcos Jr. signed the budget-related law for 2026, Economic Planning Secretary Arsenio Balisacan announced at a press conference that the country's economic growth is expected to be between 5% and 6%, down from the previous target of 6% to 7%.

Balisacan stated that the impact of the large-scale corruption scandal in the Philippines is expected to continue in the first half of this year, but the extent of the impact should decrease. The Philippines anticipates that economic growth in the first quarter or at least the first half of this year may not be as bright as originally expected.

He predicts that last year's GDP growth in the Philippines was between 4.8% and 5%, slowing year-on-year and below the target range of 5.5% to 6.5%. The GDP growth target for next year has been lowered to between 5.5% and 6.5%, down from the original target of 6% to 7%.

Balisacan expects the Philippine economy to rebound in the second half of this year, with benign inflation supporting consumption, and he anticipates that the Philippine peso will fluctuate between 58 and 60 to the US dollar, having previously fallen to a historic low of 59.26 to the US dollar last year