MANILA – The government vowed to implement urgent measures that will restore the country’s economic growth, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan said on Monday.
The Philippine Statistics Authority (PSA) reported that Philippine economic growth slowed to 2.1 percent in the third quarter of the year from 2.4 percent in the second quarter.
Economic growth in the third quarter of 2025 was at 4 percent.
In a briefing, Balisacan said economic growth was affected by high food and energy prices, which constrained household spending.
Household final consumption expenditure rose by 2.4 percent, slower than the 4 percent recorded last year.
Tighter financing conditions also weighed on investment, which declined by 0.2 percent.
The agriculture sector, meanwhile, contracted by 4.8 percent which Balisacan attributed to the effects of the tropical cyclones and the enhanced southwest monsoon that affected agricultural production.
Balisacan said public construction continued to decline, while private construction slightly grew.
“Weather disruptions and delays in project validation and payments constrained infrastructure delivery. These delays affected contractors’ capacity to pay workers, purchase materials, and undertake further work. Governance concerns and uncertainty also weighed on confidence,” he said.
Exports, however, expanded by 8.6 percent, mainly driven by the 19.4 percent expansion of electronic exports.
“Recovery toward next year’s 5 to 6 percent target remains possible but requires stronger investment, easing price pressures, and renewed confidence. Energy shocks, El Niño, and implementation delays remain risks,” Balisacan said.
“Our policy priorities are clear. Today’s report calls for urgent action to address the bottlenecks holding back investment and implementation, and restore stronger growth,” he added.
Balisacan cited the need to improve investments by putting in place predictable policies, fiscal discipline, streamlining approvals, reducing redundant requirements, and integrating digital systems.
He said the government should also accelerate the implementation of infrastructure projects to create more employment.
“The President has directed agencies to fast-track implementation-ready projects, address bottlenecks in procurement and project execution, and expedite the processing of legitimate payment claims while maintaining proper safeguards and accountability,” he said.
“We will work with Congress to secure timely passage of the national budget. A credible fiscal program must protect productive infrastructure and essential social services, supported by better revenue collection and reduced waste,” he added.
Balisacan said the government must also strengthen food and energy security by expanding climate-resilient interventions, including drought-resistant seeds, solar-powered irrigation, crop insurance, and assistance for affected farmers and fisherfolk.
The Department of Energy is also accelerating planned power projects, ensuring reserve capacity and working with international partners to safeguard fuel supplies.
Balisacan also cited the need to provide targeted and time-bound assistance to vulnerable households and sectors.
For trade and investments, Balisacan said the government is engaging key partners, including the European Union, Canada, Japan, Chile and the United Arab Emirates, while supporting exporters and investors and strengthening participation in global and regional supply chains.
“We must also strengthen our tourism through expanded direct flights, improved airport capacity, and effective promotions that attract visitors and encourage longer stays,” he said. (Anna Leah Gonzales/PNA)
