The Employers Confederation of the Philippines (ECOP) expressed hope that the national economy will perform better in 2026 following a disappointing 2025 as investor hesitation grows amid corruption and flood control scandals.
ECOP president Sergio Ortiz-Luis Jr. said the business sector expects the country to post growth of less than 5 percent this year. Government data showed the economy grew 4 percent in the third quarter, down from 5.5 percent in the second quarter and below the 5.2 percent recorded in the same period last year.
These figures fall short of the government’s revised 5.5 percent to 6.5 percent full-year growth target and the median forecast of economists at 5.3 percent. This marks the slowest quarterly growth since 2023.
Ortiz-Luis, who also serves as Philippine Chamber of Commerce and Industry (PCCI) honorary chairman, warned that the Philippines risks falling behind its ASEAN neighbors. He noted while two to three investors used to visit the PCCI every week, interest from new investors waned recently.
The business leader urged the administration of President Ferdinand Marcos Jr. to restore investor confidence to support job creation.
Fresh investments are considered crucial as 800,000 to 1 million new graduates are expected to enter the workforce next year, he said.
To address these concerns, Ortiz-Luis called for more power for the Independent Commission for Infrastructure to fully investigate the misuse of funds in flood control and other projects. He said investors are waiting for those responsible to be held accountable.
Despite the warnings, Ortiz-Luis acknowledged recent policy changes aimed at improving transparency and reducing anomalies in areas such as budget crafting.
He said these reforms could help restore confidence in the government’s economic management and help the country rebound from stagnation.
