The Philippines has not regressed enough to reclaim its “Sick Man of Asia” label despite mounting domestic and global risks, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan said on Thursday.

Speaking on the sidelines of a press conference announcing first-quarter gross domestic product (GDP) growth—which fell to pandemic-era lows—Balisacan said the country’s economic fundamentals remain far stronger than when the “Sick Man” label was first applied in the 1970s under the administration of Ferdinand E. Marcos Sr.

“I don't think that's correct. The economic fundamentals of this country were so different when we were sick men,” he said.

Economic growth slowed to 2.8 percent in the first quarter, which Balisacan attributed mainly to the lingering effects of the still-unresolved flood control scandal on public construction, as well as weakened consumer and investor confidence. He also cited the national energy emergency, which pushed fuel prices into the triple-digit per liter range in April.

With the latest data, the economy has now slowed for three consecutive quarters, with full-year 2025 growth settling at 4.4 percent—the weakest since the COVID-19 pandemic. Balisacan acknowledged the slowdown but emphasized that the government is pursuing reforms to restore confidence and strengthen the business environment.

“Obviously, it slowed down a bit. But we are also undertaking reforms aimed at addressing structural issues—such as infrastructure, connectivity, ease of doing business, and public-private partnerships,” he said.

The Philippines earned the “Sick Man of Asia” label toward the end of the Marcos Sr. dictatorship. Following the assassination of Benigno “Ninoy” Aquino Jr. in 1983, the country experienced contracting GDP, runaway inflation—which surged to around 50 percent in 1984—rising unemployment, and a debt crisis. Economists at the time described the situation as a severe form of stagflation—something Balisacan said the country has not reached today, citing easing unemployment despite higher inflation and slower growth.

“Well, I don't see it that way,” he said. “Although we saw slow economic growth over the past three quarters, I think we are moving away from that. And we have learned our lessons.”

The “Sick Man” label also reflected the Philippines’ lagging performance relative to regional peers during the industrialization boom of the 1980s. Balisacan acknowledged that the country has again trailed peers such as Indonesia, Vietnam, and China in recent data, noting that its status as a net oil importer makes it more vulnerable to the ongoing global energy shock.

He added that the Development Budget Coordination Committee (DBCC) will convene next week, with a downward revision of the government’s 5 to 6 percent growth target now “a foregone conclusion” given the conflict’s broad economic impact.

“I don't think it’s correct to say that we are back to being a sick man so far. In economic performance, you’re talking about years, not just one or two quarters,” Balisacan said.