Palace: Economy remains strong despite Cabinet shake-up, political noise

The departure of Executive Secretary Lucas Bersamin and Budget Secretary Amenah Pangandaman from the Cabinet amid allegations of corruption has undeniably shaken the country’s economic sector.

Malacañang, however, maintained that despite the developments, the Philippine economy remains stable.

“The economy remains fundamentally strong. The foundations are stable. The opportunities for investments are intact. Above all, the government’s commitment to good governance, transparency, and accountability has never been more resolute,” former Finance Secretary and now Executive Secretary Ralph Recto said in a statement.

He emphasized that the government is “not blind to the challenges, nor are shaken by them,” noting that changes in the Cabinet should not be viewed as a leadership crisis but as a move toward reform.

He also described President Ferdinand Marcos Jr. as a leader who “chose to be the whistleblower” rather than an apologist for corruption.

“For we understand that trust is the lifeblood of any economy. It keeps investments coming in, businesses expanding, and jobs growing. And this trust is being protected, strengthened, and rebuilt every single day by the Marcos administration,” he said.

“We hear you loud and clear. The Filipino people demand accountability and reform, and we answer with decisive action. For these are non-negotiables for long-term growth,” he added.

Timely passage of budget assured

Despite leadership changes in the Department of Finance and the Department of Budget and Management, Malacañang assured that the Executive Branch is coordinating with Congress to ensure the timely passage of the 2026 national budget.

“According to [Secretary Frederick Go], any reassignments of the cabinet members to DOF and DBM, they are all the same people who worked on the budget, who worked on the finance [department]. So, there will be no problem with that,” Palace Press Officer Undersecretary Claire Castro said.

ES Recto to help economic sector

Malacañang also sees an expanded role for Recto in navigating finance and economy issues, even in his new post.

“Executive Secretary Ralph Recto is still an economist. So, whatever he can help with, he will provide it,” Castro said.

Political noise affecting economy

Despite more positive economic forecasts, Castro acknowledged that ongoing political controversies have affected investor sentiment, as several business groups continue to express concern over corruption issues.

“It is true that these noises are affecting the economy. But, what can be done, other groups are shouting that the ICI hearing should be transparent, that it should be made public, but, making any hearing public causes chaos. We see the truth, but it becomes an issue every day and these issues affect the economy,” she said.

Castro added that the President will have to strike a balance between preserving freedom of expression and ensuring transparency and accountability, while avoiding perceptions of a government cover-up.

“The President will do what he has to do. He will not obstruct the hearing, he will not obstruct those who should be held accountable. And I hope our countrymen will also realize that those who are just making noise, those who have no legitimate aspirations, have affected our economy with your useless noise,” she said.