Recto sees lower inflation, gov’t reforms to boost Phl economy in 2026

Executive Secretary Ralph Recto on Friday said the Philippine economy is positioned for stronger performance in 2026 as inflation continues to ease and the Marcos administration rolls out governance reforms aimed at improving investor confidence.

Recto issued the statement following the release of November inflation figures, which showed headline inflation slowing to 1.5%, bringing the year-to-date average to 1.6%, below the government’s 2%–4% target range. 

“Better days are coming. Makakaasa po ang bawat Pilipino ng mas malakas at mas matatag na ekonomiya sa mga darating na buwan dahil sa tiwala at mas tapat na pamamahala. We will make a strong economic comeback in 2026,”he said. 

He attributed the slowdown to intensified efforts to stabilize prices of key commodities such as rice, vegetables, and meat.

The Executive Secretary said the country’s low and stable inflation was one of the factors cited by S&P Global Ratings when it reaffirmed the Philippines’ BBB+ rating with a Positive Outlook, signaling continued investor confidence in the administration’s economic management.

With inflation easing, Recto noted that the Bangko Sentral ng Pilipinas now has more room to adjust policy rates, which could stimulate household spending and broader economic activity.

He also highlighted ongoing measures to attract investments, including the temporary suspension of all field audits and related operations of the Bureau of Internal Revenue in response to concerns over Letters of Authority and Mission Orders. The administration, he said, is preparing new initiatives to streamline regulations and expand private-sector participation, particularly in agriculture.

Recto pointed to recent actions linked to the government’s anti-corruption and asset recovery efforts:

Among these efforts are the National Treasury’s receipt of P38.2 million from the auction of illegally acquired luxury vehicles linked to the Discaya family; the P110 million preliminary restitution from former DPWH Bulacan district engineer Henry Alcantara; and the P13 billion in frozen assets by the Anti-Money Laundering Council.

The ongoing investigation into irregularities in flood-control projects has also resulted in charges filed by the Office of the Ombudsman, with more cases expected, he said.

Recto added that several policy reforms, such as the Public-Private Partnership Code, CREATE MORE Act, Enhanced Fiscal Regime for Large-Scale Metallic Mining, Capital Markets Efficiency Promotion Act, and the Investors’ Lease Act, are expected to support increased productivity and foreign investment.

He said the government is expediting the repair of damaged infrastructure in calamity-affected areas to restore economic activity.

The Executive Secretary also noted that the proposed P6.793-trillion national budget for 2026 will prioritize programs in education, agriculture, health, and social services, and will be implemented under stricter rules intended to ensure efficient and transparent public spending.