Philippine Economy Demonstrates Resilience Amid Challenges, Growth Forecast Remains Positive

The Philippine economy continues to show strength despite facing recent governance issues and global uncertainties, Economic Planning Secretary Arsenio Balisacan stated on Thursday, November 20, 2025. He emphasized the country’s solid macroeconomic foundation and persistent reform efforts as key drivers of this resilience.

Balisacan reported that economic growth slowed to four percent in the third quarter, resulting in a year-to-date growth average of five percent. Nevertheless, he affirmed that the economy’s overall outlook remains stable. International organizations project an average growth rate of 5.7 percent for the Philippines in 2026.

"Our economy remains anchored by sound macroeconomic fundamentals, including steady growth, declining inflation, a robust labor market, manageable fiscal deficit and public debt, a stable currency, and a strong banking sector," Balisacan explained in a press release.

He further highlighted structural advantages such as a youthful workforce, consistent investment inflows, and increases in productivity, which collectively support a potential annual growth rate of at least six percent. The medium-term goals set forth in the Philippine Development Plan 2023–2028 remain on track.

The economic team plans to implement a combination of fiscal, monetary, financial, technological, and social-protection strategies to sustain growth in line with its potential. This approach also aims to safeguard the economy from future environmental, technological, and geopolitical challenges.

Balisacan pointed to recent legislative achievements, including the passage of the Public-Private Partnership Code, the Konektadong Pinoy Act, the Create More law, and the Arrow Act. These measures are designed to enhance infrastructure development, expand market accessibility, and improve national competitiveness.

In addition, the government continues to pursue structural reforms outlined in the 20th Congress’ Common Legislative Agenda. Efforts to strengthen human capital through education, healthcare, skills training, and social protection are also being intensified.

To maximize the impact of government spending, Balisacan’s department is prioritizing enhanced planning, budgeting, and project evaluation processes to ensure resources are allocated efficiently to high-impact programs.