PH growth to keep slowing without anti-corruption fixes, ex-BSP official says

Philippine economic growth will likely continue to slow unless the government addresses corruption and governance concerns, a former official of the Bangko Sentral ng Pilipinas (BSP) said Friday.

According to GlobalSource Partners analyst and former BSP deputy governor Diwa Guinigundo, the economic slowdown is likely to continue as investor confidence is being hit by the ongoing issues.

“Unless the government is able to resolve the issue of corruption and bad governance, napakahirap pong i-restore or ibalik ang tiwala ng mga mamumuhunan at ang negosyo sa ating bansa,” he said in an interview on GMA Super Radyo DZBB on Friday.

“Kaya ang aasahan po natin sa taong ito at sa darating pang panahon ay patuloy na slowdown ng ating economy, at diyan po nakasalalay ‘yung paglago, employment, at pagbuti nung ating kabuhayan sa Pilipinas,” he added.

(Unless the government is able to resolve the issue of corruption and bad governance, it will be very difficult to restore the trust of investors and businesses in the country. What we can expect this year and in the coming period is a continued slowdown of the economy, as growth, employment, and improvements in livelihoods all depend on that.)

This comes as both chambers of Congress look into alleged irregularities in public works spending, after President Ferdinand “Bongbong” Marcos Jr. in August disclosed that 20% of the total P545-billion budget for flood control projects went to only 15 contractors, which he described as a “disturbing assessment.”

The administration has also established the Independent Commission for Infrastructure (ICI), in response to public calls for greater transparency and accountability in infrastructure spending. It is tasked to conduct an in-depth investigation into the alleged irregularities and misuse of funds in flood control, and other infrastructure projects.

Guinigundo said political issues should first be addressed, before economic growth rebounds.

“Bakit ka naman papasok sa isang ekonomiya o sa isang kabuhayan na alam mo na ‘yoong pera para sa infrastructure, ‘yung pera para sa public education at public health, eh diyan nakasalalay ‘yung human capital development, diyan nakasalalay kung lalago o hindi ang ating ekonomiya?” he said.

“Bakit ka papasok sa isang ekonomiya na alam mo ‘yung pamahalaan ay hindi ginagamit ‘yung budget para doon sa kinauukulang gastusin na kinakailangan mo para lumawak, halimbawa, ang connectivity sa bansang ito, lumawak ‘yung roads and bridges na makatutulong sa’yo sa pagma-market ng iyong produkto? ‘Yan ay kaugnay sa politika,” he added.

(Why would you enter an economy or invest in a livelihood when you know that the funds meant for infrastructure, public education, and public health — which are critical to human capital development and determine whether the economy grows or not — are being misused?

Why would you invest in an economy when you know the government is not using the budget for the intended expenditures you need to expand, such as improving connectivity in the country or building roads and bridges that would help you market your products? That is tied to politics.)

For 2025, Philippine economic managers have already cut the country’s growth target to 5.5% to 6.5% from 6.0% to 8.0%, but the revised goal is still “very unlikely” to be met, according to Department of Economy, Planning, and Development Secretary Arsenio Balisacan.

The inter-agency Development Budget Coordination Committee (DBCC) also lowered its target range from 2026 to 2028 to 6.0% to 7.0% from 6.0% to 8.0% previously. — BAP, GMA Integrated News