MANILA, Philippines — The country’s economic growth slumped to a post-pandemic low of 3 percent in the fourth quarter of 2025 amid fallout from the graft probe and a string of devastating typhoons.
As gross domestic product (GDP) growth in the final quarter further slowed from the already disappointing 3.9 percent revised third-quarter growth, the country thus closed 2025 with below-target performance.
The economy expanded by just 4.4 percent for the whole of 2025 as subdued momentum persisted throughout the year, the Philippine Statistics Authority reported on Thursday.
This marks the third consecutive year the Marcos administration has missed its growth target, falling short of the 5.5 to 6.5 percent goal set for 2025.
”This outcome reflects several converging factors. These include the adverse economic effects of weather and climate-related disruptions. Admittedly, the flood control corruption scandal also weighed on business and consumer confidence,” Economic Planning Secretary Arsenio Balisacan said.
The 3-percent fourth-quarter growth marked the country’s worst economic performance since the 3.8-percent economic contraction recorded in the first quarter of 2021 during the COVID-19 pandemic lockdowns.
Excluding the pandemic period that resulted in economic recession, it was the worst performance since the 1.8-percent economic contraction seen in the fourth quarter of 2009.
Missing the target
As it stands, the figure missed even the government’s 4.7 percent to 4.8 percent forecast, which was set after they had already anticipated a slowdown following the four-year low growth recorded in the third quarter that rattled the economic confidence.
Yet again, the subdued momentum was driven by the sweeping flood-control corruption scandal, which dragged government spending in infrastructure to a nearly 42-percent contraction.
“While these developments weighed on short-term growth, the Marcos Administration emphasizes that the investigations into the flood control corruption controversy had to be undertaken,” Balisacan said.
”In infrastructure, we are resuming and accelerating the completion of public works while enforcing stricter anti-corruption safeguards,” he added.
