MANILA, Feb 2 - The Philippine government expects the economy to regain momentum in 2026, aiming for growth of at least 5%, Finance Secretary Frederick Go said on Monday. His comments come after the economy expanded by 4.4% in 2025, a result that fell short of the administration's 5.5% to 6.5% target for the year.
Officials attribute the weaker 2025 outcome in part to a corruption scandal that reduced public spending and dented both consumer and investor confidence. Despite that setback, Go argued that the nation's core economic measures remain sound. He said inflation is under control and that credit ratings have not changed.
Speaking to foreign correspondents, Go offered a succinct forecast: "We will bounce back. And we will definitely have a GDP of at least 5%." He noted that the government is setting a growth objective of between 5% and 6% for 2026.
In outlining the sources of resilience, Go specifically cited growth in remittances from overseas Filipino workers and revenues from the business process outsourcing sector, which he identified as reliable contributors to the economy. Those revenue streams were presented as pillars that support demand and foreign-exchange inflows.
Context and implications
The 4.4% expansion in 2025 reflects a shortfall relative to official targets and highlights the sensitivity of growth to public spending and confidence effects. The finance secretary emphasized that the underlying macroeconomic indicators remain intact, signaling the government's expectation that the economy can rebound as those stabilizing flows continue.
Key sectors cited by the finance minister - remittances and business process outsourcing - are central to household income and service-sector receipts. Their performance will be important for domestic demand and external balance in the near term.
Outlook
The government is pursuing a 5% to 6% growth range for the year. While officials point to steady fundamentals, the path to meeting that objective will depend on whether consumer and investor confidence recover and whether public spending stabilizes after the events that weighed on 2025 performance.