Palace hopes faster government spending will boost Philippine economy

Malacañang on Wednesday said it is hopeful the Philippine economy will improve as government spending accelerates.

The statement came after the World Bank said in its mid-year update that corruption had slowed the country's economic growth.

In a message to GMA News Online, Palace Press Officer Undersecretary Claire Castro acknowledged the World Bank's assessment.

She said infrastructure projects were affected by the exposure of an alleged corruption scheme in flood control projects in 2025.

"This suspension has obviously led to significantly reduced government spending, especially starting in the fourth quarter of last year," she said.

Castro also said that while the private sector remained productive, economic activity was affected by the oil crisis stemming from the conflict in the Middle East and the closure of the Strait of Hormuz.

She maintained that the government responded promptly through the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) program, which she described as the government's comprehensive assistance program for affected families and individuals.

"With the government's push for faster spending and budget releases starting in the second quarter and [continuing in] the third quarter, we hope that the economy can start to pick up as well," Castro said.

The government is set to release second-quarter Philippine economic growth data on Friday. —VBL, GMA News