The Philippine economy remains resilient amid the current political noise and continuing global headwinds, with its potential growth expected to stay around 6 percent annually, according to the Department of Economy, Planning and Development (DEPDev).
DEPDev Secretary Arsenio Balisacan, in a statement, attributed the country’s sound macroeconomic condition to its sustained growth and easing inflation.
Amid political noise and global headwinds, the economy continued to expand, although growth moderated to 4.0 percent in the third quarter. Growth in the first three quarters averaged 5.0 percent.
International institutions, on average, project a 5.7-percent growth rate for 2026, according to DEPDev.
Balisacan said the country’s fiscal deficit and public debt are manageable, along with a broadly stable currency and external position.
The labor market also remains healthy, and the banking system continues to be robust.
“Supported by structural strengths—including a robust labor force, steady capital investment, productivity gains, and ongoing technological progress—our potential growth remains at least six percent annually. Our medium-term targets reflect this capacity,” said Balisacan.
He said the economy’s overall trajectory remains firm despite short-term fluctuations and external headwinds affecting immediate outcomes.
Balisacan said the priorities of the government’s economic team remain consistent with the Philippine Development Plan 2023-2028 as they continue to strengthen their economic foundations.
“Under the 20th Congress, we are advancing key structural reforms under the Common Legislative Agenda to strengthen governance, boost productivity and dynamism across major sectors of the economy,” he said.
These include the prioritization of human capital development through the expansion or implementation of laws, policies and projects that equip Filipinos with skills to navigate the evolving economic landscape.
DEPDev said the government is prioritizing the quality enhancement of public investments, ensuring that resources are directed toward valuable programs and projects.
This involves the strengthening of planning and budgeting linkages, improving program convergence and project coordination, scaling up strategic monitoring and evaluation and expanding capacity building.
“These initiatives form part of the government’s broader efforts to reinforce governance and strengthen institutions. We call on our partners in business, civil society, and the international community to continue working with us as we progressively realize our shared aspirations,” said Balisacan.
