The economic outlook for the Philippines is facing a challenging period, with a significant red flag raised by domestic political risks. According to the UK-based Pantheon Macroeconomics, the repercussions from “anomalous flood-control projects” are projected to exert a considerable drag on the nation’s economy, potentially extending all the way into 2026.
This isn’t merely a future concern; its impact is already palpable. The report cautions that the country’s growth trajectory is currently constrained by a noticeable softening in household demand and a slowdown in private investment. This economic deceleration was starkly evidenced in the third quarter, when the Gross Domestic Product (GDP) growth experienced a sharp decline to just 4 percent.
The message is clear: political stability and transparent governance are not just ideals, but fundamental pillars supporting economic health. As these political uncertainties linger, they threaten to further erode both investor confidence and consumer spending, making a robust and sustained economic recovery a formidable challenge for the Philippines in the coming years.
Source: Original Article
