MBC: 2026 growth unlikely to meet government target
Philippine economic growth may fall below the government’s goal for 2026, but accelerated government spending could help support growth, the Makati Business Club said.
The Philippine economic growth may fall short of the government's goal for 2026, according to the Makati Business Club (MBC). MBC chairman Edgar Chua stated that business growth could be slower than initially projected. The Development Budget Coordination Committee (DBCC) has reduced its GDP growth target to 3.5-4.5 percent, down from the previous five to six percent goal.
In the second quarter, the economy grew by 2.3 percent, the slowest performance in five years, bringing the average economic growth in the first half to 2.6 percent. Chua noted that the economy is facing various challenges, including higher energy prices due to the Middle East conflict and corruption issues that led to slower government spending.
The government is a key driver of the economy, and Chua believes that if the government increases its spending, it could help stimulate economic growth. However, for the economy to grow at a faster rate, Chua emphasized the need for continued investment in infrastructure and education to attract more investments. Chua also called for the passage of certain legislative measures to restore public confidence in the government, which would encourage investments.
To support growth in 2026, the government might need to catch up on its spending, particularly in infrastructure, as long as governance standards are improved.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
