The country is expected to post solid growth in the medium term even as economic managers lowered targets amid global and domestic headwinds, Department of Economy, Planning, and Development Secretary Arsenio Balisacan said.
Balisacan said the Development Budget Coordination Committee now expects gross domestic product to expand 5 percent to 6 percent this year, lower than the previously set 6 to 7 percent.
“The reason for the scaling down of growth rose from the realities we have seen, both globally and domestically,” Balisacan said during a Palace briefing yesterday, citing recent assessments from the International Monetary Fund, World Bank and Asian Development Bank.
“Uncertainty is still faced globally and that is impacting on us as well. We are an open economy to begin with,” he added.
The DBCC also expects growth to be within 5.5 percent to 6.5 percent in 2027, and 6 percent to 7 percent in 2028.
Balisacan, however, said the conflict between the United States and Venezuela will have no impact on the country’s economy.
“With respect to the impact of Venezuela, there is hardly anything,” he said. “I don’t think there’s going to be a perceptive effect on us.”
Balisacan said consumption is expected to remain resilient, supported by employment gains and remittances.
Consumer confidence, which weakened in the third quarter alongside a slowdown in spending to 4.1 percent from more than 5 percent, is expected to rebound as inflation continues to ease, he said.
Inflation has fallen sharply since late 2024, and authorities are targeting a 2% to 4% range this year, Balisacan added.
“We do expect that the economy will grow sufficiently strong, especially toward the second half of the year,” he said, adding that residual effects from last year’s shocks may linger in early 2026.
He said the administration is prioritizing “more inclusive” growth, pointing to budget allocations for health, education, social protection and job creation.
These are intended to quicken poverty reduction even without a dramatic pickup in headline growth, Balisacan said.
