The Philippine Chamber of Commerce and Industry (PCCI) expects the Philippine economy to regain momentum in the first quarter this year after government fell short of its growth targets at only 3 percent in 4Q25.
PCCI President Perry Ferrer attributed the decline to government’s action to reduced- and to some extent stoppage in public spending due to corruption scandal on the country’s infrastructure projects.
“The 3 percent growth rate in the 4Q25 was an after effect of the corruption scandal. It was expected because government has reduced or even stop public spending,” Ferrer said, as he welcomed the pronouncements of Public Works and Highways Secretary Vince Dizon to cleanse his agency and get back to infrastructure spending.
Ferrer noted that prior to the scandal, the country’s GDP in the 2Q25 was at 5.5 percent – among the highest in the ASEAN region, only second to Vietnam, and surpassing Singapore, Malaysia and Indonesia. Ferrer noted the 20 percent increase in exports in 4Q25, with December alone accounting for USD6.99B.
“Recovery is now imperative. We must focus on ensuring that corrective and preventive measures to ensure that this kind of disruption will not happen again,” he added.
One of these measures is the adoption of the blockchain technology in the 2026 national budget, ensuring that every peso spent is accounted for, receipted, and cannot be altered.
Earlier, Dizon announced that government’s target spending on infrastructure projects is between P200 billon and 250 billion, prioritizing the long-delayed road upkeep ad maintenance and completion of stalled projects nationwide.
