Economy still resilient
“Even in a quarter of slowdown, the strength of exports and services shows that the Philippine economy retains resilience and capacity for recovery,” Lee said.
“But resilience alone is not enough — this moment must be treated as a structural inflection point.”
Lee said the recent slowdown highlighted the country’s continued exposure to external shocks, particularly in energy and industrial supply chains.
“Energy resilience and industrial diversification are critical. Import dependence and energy vulnerability amplify every external shock,” she said.
“A more diversified energy base and stronger industrial policy must complement services-led growth.”
Governance and public spending concerns
Business confidence also took a hit during the quarter as concerns over governance and public spending intensified following the controversy surrounding flood control projects.
According to Lee, restoring investor trust would require long-term transparency and accountability reforms rather than short-term assurances.
“Credibility is not restored overnight — it is built through consistent quarters of transparent, accountable governance,” she said.
“Each step toward verifiable procurement reform strengthens trust and signals to investors that the Philippines is committed to a new era of integrity and opportunity.”
Despite the weak quarter, industry leaders said opportunities remain for the Philippines as global manufacturers continue diversifying operations away from traditional production hubs.
Lee noted that rising exports and the gradual easing of foreign investment restrictions could still position the country to attract new capital inflows, particularly as ASEAN economies compete for manufacturing expansion.
Fundamentals intact even in slowdown
“Even in slowdown, the fundamentals remain intact. Exports are rising, services are expanding, and ASEAN manufacturing opportunities are opening at our doorstep,” she said.
She added that the current slowdown could ultimately become a turning point if the government accelerates reforms in governance, infrastructure, energy, and industrial development.
“We can turn this hard lesson into a structural opportunity,” Lee said.
