President Ferdinand “Bongbong” Marcos Jr. expressed confidence that the Philippines is expected to bounce back by 2026 and hit its growth targets by 2027.
Marcos made the remarks after meeting with Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. and Monetary Board officials to review the latest monetary policy decision and economic outlook, considering lower inflation and measures aimed at lowering borrowing costs and supporting household consumption and private sector investment.
The Presidential Communications Office (PCO) reported that October 2025 inflation slowed to 1.7%, while the bottom 30% of households saw deflation of 0.4 percent. The data prompted the Bangko Sentral ng Pilipinas Monetary Board to trim the policy rate to 4.75%.
BSP Governor Eli Remolona Jr. emphasized that the rate cut is intended to bolster demand and sustain the economy’s recovery trajectory. “The inflation environment has stabilized, allowing the BSP to act with confidence,” he said.
The central bank now projects inflation to average 3.1% in 2026, within the government’s 2–4% target range, and to ease further to 2.8% in 2027 as supply-side constraints normalize.
President Marcos reaffirmed his administration’s focus on safeguarding macroeconomic stability while advancing broad-based growth. “Although there was poor growth in 2025, the economy is expected to recover by 2026 and return to the government’s target range by 2027,” he said.
He further downplayed fears that domestic corruption concerns or international economic pressures have dampened investor sentiment, pointing out that currency swings and stock market movements were predominantly influenced by global conditions.
Economic growth in the Philippines slowed in 2025, raising concerns about the country’s short-term recovery. Analysts attributed the slowdown to temporary factors, such as reduced public capital spending and external uncertainties. Nevertheless, government-led monetary measures and easing inflation are viewed as crucial in supporting a rebound in growth.
“Lower interest rates will help businesses expand and households access credit more easily, supporting overall recovery,” said Dr. Jose Ramon Albert, senior fellow at the Philippine Institute for Development Studies.
The Marcos administration signaled a continued commitment to careful macroeconomic stewardship, targeting a stable inflation environment to encourage sustainable growth without compromising fiscal discipline. BSP authorities underscored that all policy adjustments will be informed by data and aligned with the country’s long-term growth strategy.
Looking forward, the government anticipates that the economy will re-enter its target growth range by 2027, bolstered by ongoing monetary support and structural reforms. These initiatives aim to strengthen investor confidence, create business opportunities, and encourage inclusive growth across sectors. Officials also plan to monitor supply-side factors to keep inflation within target, ensuring stability for both households and businesses.
With inflation moderating and the BSP taking strategic policy actions, the Philippine economy is expected to rebound in 2026, reversing the slowdown seen in 2025. President Marcos underscored the government’s commitment to economic stability and inclusive growth, while monetary authorities continue fine-tuning tools to stimulate demand.
As the nation enters a more favorable inflation environment, upcoming economic indicators will be critical in evaluating the trajectory and resilience of the recovery.