Better economy seen with tamed inflation — Recto

Executive Secretary Ralph Recto, the former secretary of Finance, on Friday said that Filipinos could expect “a better, stronger Philippine economy” ahead as the Marcos administration keeps inflation “under control.”

“We will make a strong economic comeback in 2026,” Recto said.

The executive secretary issued the statement after Department of Economy, Planning and Development Secretary Arsenio Balisacan said the economy is “very unlikely” to meet the already downgraded growth target range of 5.5% to 6.5% set by the inter-agency Development Budget Coordination Committee (DBCC).

Meanwhile, Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said the country’s economic growth is expected to fall to between 4% to 5% this year, below the government's already trimmed-down target range of 5.5% to 6.5% and is likely to recover gradually by mid-2026 due to loss of investor confidence amid the flood control corruption scandal.

Recto noted that the inflation rate slowed down to 1.5% in November 2025 due to “intensified efforts to stabilize prices and secure the nation’s food supply, especially rice, vegetables, and meat.”

This brought the year-to-date inflation rate to 1.6%, falling below the government’s 2% to 4% target range.

Recto, moreover, said the country’s low and stable inflation is among the strengths cited by S&P when it reaffirmed the Philippines’ ‘BBB+’ high investment-grade rating with a Positive Outlook.

“A high credit rating signals investors’ strong vote of confidence in President Ferdinand R. Marcos Jr. 's leadership,” he said.

“Lower prices, combined with a strong labor market, are expected to boost domestic demand, drive consumption, and support the Philippines’ above-average growth relative to its regional peers,” he added.

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

“The opportunities for investments also remain robust as the economic team continues to clear bottlenecks to attract more private sector participation. These include the temporary suspension of all field audits and related operations of the Bureau of Internal Revenue (BIR) in response to taxpayers’ concerns on Letters of Authority and Mission Orders,” he said.

“The government will reduce regulations and processes that hamper investments, and will soon announce new initiatives and investment opportunities for the private sector, particularly in the agriculture sector,” he added.

The executive secretary said the Treasury has received the proceeds from the public auction of illegally acquired Discaya-owned luxury vehicles worth P38.2 million, and preliminary restitution of P110 million worth of kickbacks from ex-DPWH Bulacan first district chief engineer Henry Alcantara, which will be used for national development.

The Anti-Money Laundering Council (AMLC) has also frozen P13 billion worth of assets to date.

“Ongoing efforts to address infrastructure gaps and game-changing investment reforms, such as the Public-Private Partnership (PPP) Code, the CREATE MORE Act, the Enhanced Fiscal Regime for Large-Scale Metallic Mining, the Capital Markets Efficiency Promotion Act (CMEPA), and the Investors’ Lease Act, are expected to boost economic productivity and foreign direct investments,” Recto said.

“The government is also fast-tracking the rebuilding of critical infrastructure in communities hit by recent calamities to restore economic activity and support livelihoods,” he added.

The executive secretary said the government is also tightening rules to ensure efficient, transparent, and quality spending moving forward. It assures the public that P6.793-trillion proposed national budget for 2026 “will be the most disciplined budget and focused on programs with the highest multiplier effects, such as education, agriculture, health, and social services.” — BAP, GMA Integrated News