Marcos accepts economic hit from flood control probe—Palace

President Ferdinand “Bongbong” Marcos Jr. acknowledged the economic implications of climate change–related disruptions and a high-profile investigation into alleged irregularities in flood control infrastructure projects, Malacañang said Thursday.

According to Presidential Communications Office (PCO) Undersecretary Claire Castro, Economic Planning Secretary Arsenio Balisacan briefed the President on how these developments have coincided with a marked slowdown in the country’s economic growth, particularly in late 2025.

Official data show the Philippines’ gross domestic product expanded just 3.0% year-on-year in the fourth quarter of 2025, the slowest pace since early 2021 and well below market expectations, contributing to a full-year GDP growth of 4.4%, short of the government’s 5.5% to 6.5% target for 2025.

The slowdown has been linked to weaker public spending, subdued investor and consumer confidence, and external pressures, including natural hazards and climate-related disruptions that affected production and activity.

Castro said that Mr. Marcos accepted that his decision to press a thorough investigation into the flood control projects could weigh on short-term economic performance, but said it was necessary to hold those implicated in corruption accountable.

Despite the economic headwinds, the administration is pursuing policies to boost investment, particularly in technology and key sectors; raise agricultural production; speed infrastructure development; and pass priority legislation.

Officials also said the government is seeking to strengthen good governance and deepen ties with members of the Association of Southeast Asian Nations as the Philippines prepares to chair and host the ASEAN Summit in 2026.

Palace aides said demonstrating a firm stance against corruption could ultimately enhance confidence among investors, foreign leaders, and global partners.