Department of Finance (DOF) Sec. Frederick Go – Photo from Department of Finance/Facebook
Finance Secretary Frederick Go says the Philippines’ slower economic growth at the end of 2025 does not amount to a crisis, arguing that key macroeconomic conditions remain sound despite a sharper-than-expected slowdown.
Official data released Thursday show the economy expanding by 3 percent in the fourth quarter of 2025, pulling full-year growth down to 4.4 percent—below government targets and the slowest pace in over a decade outside the pandemic years.
Speaking at an industry event, Go downplays the outcome by comparing it with regional and global averages, saying the country is still growing faster than many peers. He adds that the underlying drivers needed to lift growth this year remain in place.
The weak performance, largely anticipated amid stalled public spending linked to corruption investigations, turns out more pronounced than expected. Even so, Go maintains that inflation control, steady remittances and a rebound in exports should support a return to higher growth.
Government planners now aim for economic expansion of around 5 to 6 percent in 2026, with higher targets in succeeding years, though these goals have already been revised downward. Go says growth recovery will be gradual rather than immediate.
Private economists broadly agree that the economy is not in crisis but warn that a strong rebound may take time. Analysts point to prolonged weakness in public construction and subdued private investment as constraints likely to persist well into 2026.
Despite the challenges, economists note that inflation remains within target and financial conditions are stable, offering room for policy support. Most forecasts see growth staying below potential this year, with a more meaningful pickup hinging on restored confidence and sustained reforms.