The government has rolled out measures to restore consumer and business confidence and help the domestic economy regain momentum following its weaker-than-expected performance in the third quarter of 2025.
During a briefing on the third-quarter gross domestic product (GDP) report Friday, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan said the government is fast-tracking the release of social and financial aid for disaster-hit areas to stimulate local economic activity.
He said efforts also include pursuing free trade agreements with the United Arab Emirates, Chile, the European Union, and Canada; fully implementing the Regional Comprehensive Economic Partnership (RCEP); maximizing underutilized programs and the 2025 national budget; and introducing reforms to improve governance and financial efficiency.
The measures come after GDP growth slowed to 4 percent from July to September, down from 5.49 percent in the previous quarter and 5.2 percent in the same period last year. The average growth so far this year stands at 5.49 percent, below the government’s 5.5 to 6.5 percent target range.
Balisacan attributed the slowdown to disruptions in infrastructure projects caused by anti-anomaly reviews and the effects of recent weather disturbances.
“These factors reflect and affect consumer and business expectations and provide a clear signal for the government to act boldly and decisively,” he said.
“While we may not be able to fully recover the economic losses within the year, we believe these are temporary setbacks. With sustained interventions and improved resilience, we expect the economy to rebound in 2026,” Balisacan added.
He also emphasized the role of the private sector in combating corruption, saying this requires a whole-of-society approach.
Despite the challenges, Balisacan maintained a positive outlook, citing the country’s strong macroeconomic fundamentals — including low inflation, a manageable fiscal deficit, a stable peso, solid banking conditions, and favorable demographics.
He added that the usual fourth-quarter uptick in demand and steady remittances from overseas Filipino workers (OFWs) are expected to boost economic activity.
To meet the government’s annual target, the economy needs to expand by 5 to 6.8 percent in the final quarter, which Balisacan acknowledged as “challenging” given recent weather disruptions.
“But my own take is that if we can get at least to the fives, that would be a very good achievement given the shocks that we’ve not anticipated and that had happened,” he said.
“With the measures now in place, economic performance for the last quarter is expected to improve — and by next year, we should be able to come back stronger,” Balisacan added.
