Malacañang acknowledged that ongoing investigations into alleged anomalies in flood control projects have affected the country’s economic performance, even as it vowed to boost investment, employment, and tourism.
In a briefing on Wednesday, Presidential Communications Office Undersecretary Claire Castro said President Ferdinand Marcos Jr. chose to pursue probes into irregularities in flood control initiatives, which she said contributed to slower economic growth last year.
“Earthquakes, floods, and storms have come one after another… still, he will not stop the investigation,” Castro said.
Castro also addressed recent downgrades by international financial institutions, including the Asian Development Bank, World Bank, S&P Global, and AMRO, which lowered the Philippines’ 2025 and 2026 growth forecasts. She said the government attributes the revisions to global uncertainties, tighter financial conditions, and the moderation of domestic activity in the third quarter of 2025.
“Nonetheless, the Philippine economy grew by 5.0 percent in the first three quarters of 2025,” Castro said, noting that cautious government spending—particularly in infrastructure affected by the flood control probe—weighed on fourth-quarter growth.
“The medium-term growth trajectory remains intact, with expansion expected to rebound gradually starting in 2026 as growth-enhancing reforms take effect,” she added.
Castro emphasized that President Marcos wants the economic team to prioritize investment generation and employment.
“The President wants investments to increase to create more quality jobs and higher employment to reduce poverty,” she said.
She added that inflation remains under control and should continue to be monitored carefully. Castro stressed that the flood control investigation, though politically sensitive, is necessary to address corruption and ensure accountability.
The Palace stated that government agencies are also refining plans to create more jobs, generate income, and boost tourism while addressing structural economic issues.
