November 13, 2025 | 1:01pm
MANILA, Philippines — President Ferdinand Marcos Jr. on Thursday attributed the country’s slower economic growth not to corruption but to natural hazards and global trade shifts.
At a rare press conference, Marcos addressed questions on the country’s stunted growth, following a third-quarter downturn and the Philippine peso weakening to a record low.
“The reason that we had that, there really was a downturn in economic activity. You have to remember, it’s not only because of these problems. The cyclones, the working days that were lost in the economy,” he said, noting stalled operations on several occasions.
He also pointed to global disruptions as contributing to slower performance.
“We are not the only ones suffering from the new trade structure that has been imposed on the rest of the world, so we are all adjusting to that,” Marcos added, avoiding direct reference to steep tariffs US President Donald Trump has implemented.
Marcos remained optimistic, however, about a rebound in the last quarter of the year. He said government has increased spending for the remainder of the year and it will be spent according to plan.
Corruption scandal hits spending
Government spending in the third quarter declined after a massive corruption scandal rocked the Department of Public Works and Highways (DPWH). Several infrastructure projects were suspended, while stricter budgetary rules were implemented after the a massive kickback scheme was uncovered.
Economic Planning Secretary Arsenio Balisacan earlier said the scandal significantly dampened productivity and public investment.
“The productive capacity that we had wanted to happen was muted by all this corruption,” Balisacan said.
He also warned that the country would struggle to hit even the lower end of its 2025 growth target.
To meet its 5.5% annual growth goal, the economy would have to expand by around 6.9% in the fourth quarter.
