Phl economy still strong despite political turmoil — DEPDev chief

The Philippine economy remains strong, backed by sound macroeconomic fundamentals, and is resilient enough to bounce back from the governance issues currently tainting the Marcos administration, said Department of Economy, Planning and Development (DEPDev) Secretary Arsenio Balisacan on Thursday.

“The Philippine economy remains strong despite recent governance challenges and continuing global uncertainties,” he said in a statement, noting that the country’s overall economic trajectory “remains firm,” with reforms underway and potential growth still at least 6 percent annually.

Balisacan issued a similar statement following the release of the country’s third-quarter 2025 Gross Domestic Product (GDP) growth rate of 4.0 percent — a figure that further dampened investor confidence, as reflected in the Philippine Stock Exchange index slipping to a then three-year low.

Sharp swings

The market has since experienced sharp swings, notably plunging to 5,584.35 — near May 2020 trading levels — on Friday, 14 November, after former Ako Bicol Representative Zaldy Co released a video exposé implicating President Ferdinand R. Marcos Jr. as the mastermind behind roughly P100 billion in budget insertions tied to ghost flood-control projects.

In response to Co’s subsequent allegations, Executive Secretary Lucas P. Bersamin and Department of Budget and Management (DBM) Secretary Amenah Pangandaman resigned out of delicadeza — prompting the promotion of Finance Secretary Ralph Recto to executive secretary, while Special Assistant to the President for Investment and Economic Affairs (SAPIEA) Frederick Go took over Recto’s DoF post.

Senator Imee Marcos — the President’s older sister — also alleged earlier this week during the Iglesia ni Cristo rally that her brother and members of his family are habitual users of illicit substances.

Fundamentals strong

Despite the political turmoil, Balisacan remains optimistic that the country’s fundamentals are strong enough to weather the disruption.

“Amid political noise and global headwinds, the economy continued to expand: although growth moderated to 4.0 percent in the third quarter, full-year growth for 2025 has so far averaged 5.0 percent. International institutions, on average, project a 5.7 percent growth rate for 2026,” he said.

“Our sound macroeconomic fundamentals — sustained growth, easing inflation, a healthy labor market, a manageable fiscal deficit and public debt, a broadly stable currency and external position, and a robust banking system — continue to anchor our resilience,” Balisacan added.

Bangko Sentral ng Pilipinas (BSP) data shows inflation remained unchanged month-on-month at 1.7 percent in October, below the central bank’s 2.0 percent–4.0 percent target range. Meanwhile, unemployment declined to 1.96 million in September from 2.03 million in August. Sovereign debt also eased to P17.455 trillion in September from P17.468 trillion the previous month.

Supported by structural strengths

“Supported by structural strengths — including a robust labor force, steady capital investment, productivity gains, and ongoing technological progress — our potential growth remains at least 6 percent annually. Our medium-term targets reflect this capacity,” said the DEPDev chief.