towards Aubrey Rose A. Inosana, Reporting
The Philippine economy may still grow within 5.5-6.5% Target this year as spending money is expected to “remake” to Fourth quarter, budget and department secretary (DBM) Amenah F. Pangandaman.
Ms. Pangandaman, who also retained the seats on the Development Finance Coordinating Committee (DBCC), said the Gross Domestic Product (GDP) target of 5.5-6.5% this year “remains within reach.”
He said: “The spending is expected to catch up and spend normally in the last half of the year.” Businessworld in a Viber message on Oct. 15.
“The temporary reduction in public infrastructure spending is expected as agencies do due diligence, especially the DPWH (Department of Public Works and Highways) as it re-evaluates and evaluates its projects,” he said.
Finance Secretary Ralph G. Recto earlier this week said that economic growth is likely to cool in the third quarter, adding that the decline may continue until the beginning of 2026 projects as the Government’s spending is scrutinized.
President Ferdinand R. Marcos, JR. he criticized the anamalous flood control projects during his state of the nation address in late July. This sparked several investigations into fraud involving law enforcement, the government ofefIcons, and independent contractors.
Earlier, economic secretary Arsenio M. Balisacan said the DBCC will wait for the third quarter data to be released on November 7 before updating the growth targets.
However, he noted that achieving the goal of full-year construction is “difficult” due to reduced government spending.
In the first half, GDP growth reached 5.4%, slightly lower than 6.2% last year.
Ms Panjandaman said the economic team remains “vigilant and active” in managing financial risks while staying aligned with the medium-term financial framework.
In June, the DBCC removed its growth forecast to 5.5-6.5% in 2025 and 6-7% in 2026, mainly because “global confidence is due to the Middle East Congriffs.
Ms. Pangandaman said the country’s growth momentum will be supported by key factors, including macroeconomic fundamentals, low inflation, and a low interest rate environment.
He also selects attractive markets and features, strong independent class momentum, and ef moreefgovernment spending money as a driver of economic growth.
In a separate statement on Thursday, Mr. Recto said he will send strong economic growth forward, citing improved governance and institutional reforms following flood control.
“Growth is supported by low inflation, policy rate cuts, strong consumer spending, and an active labor market,” he said.
Handline inflation reached 1.7% in the first nine months of the year, according to the Bangko Sentral Ng Pilipinas forecast.
John Paolo R. Rivera, senior researcher for Philippine research at the Development Center, said the DBCC may need to revise its macroeconomic outlook to reflect global realities, weak consumer confidence, and financial constraints.
Economic managers should also prioritize targeted reforms and institutional reforms to support resilience, he said.
“It will be challenging but not impossible, despite the Quiter Slowdown,” said Mr. Rivera in a Viber message on Thursday.
“Growth will depend on domestic consumption and investment in time for the holidays, if the government implements stimulus, and if inflation stays within target,” he added.
Sir Percive K. Peña-Reña-Reyes, Director of the Ateneo Center for Economic Research and Development, said the DBCC should review its growth targets due to cleaning up corruption over flood control projects over flood control projects over flood control projects over flood control projects over flood control projects over projects flood control.
“Corruption scandals have a positive impact on the farmer’s struggle,” he said in a Viber message on Thursday.
Mr. Peña-Reña-Reiyes said that the economy may have expanded by 5.6% in the third quarter, accelerating the growth of 5.2% in the same period last year.
For the full year, growth will remain at 5.5%, in line with the lower end of the government’s target range but slower than the 5.7% in 2024 in 2024 in 2024 in 2024 in 2024 in 2024 in 2024 in 2024.
Calixto V. Chikiamco, the founder of the Economic Forum for Freedom, said that the performance of the Philippine economy may be “disappointing” this year given the headwinds facing the Philippines.
“This picture could get worse in the next year when Trump’s taxes start to bite and the global recession takes place,” the Viber message said.
The recto rejects the reduction of the vat
In addition, Mr. Recto warned against the proposals of some legislators to reduce the value of the sales tax (VAT) to 10%, saying this move could lead to the loss of “loss of capital” and force the government to borrow basic activities.
“The entire 2025 VAT collection of P1.39 Trillion can only cover the nine-month salary, premium, and pension of active and retired government employees,” said Mr. Recto, who wrote the high-profile estimate in 2005.
Several legal tenders have filed bills seeking to scrap or cut the 12% VAT rate. The VAT account collects about one-fifth of the bureau’s internal revenue.
Muncto Recto said the Excise tax collections, shown at P576 billion this year, will not be enough to cover the P965-billion budget for basic, higher education, and technology programs.
