‘Long-term economic fundamentals intact’

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

January 31, 2026 | 12:00am

Despite weaker 2025 growth

MANILA, Philippines — Finance Secretary Frederick Go expressed optimism that the Philippine economy would regain momentum this year, even after gross domestic product (GDP) growth slowed to 4.4 percent in 2025, missing the government’s target for the third straight year.

Speaking to reporters on the sidelines of a Philippine Life Insurance Association event yesterday, Go said growth recovery would be gradual and would not happen all at once.

However, he said that Philippine growth “should be back on track this year.”

“I’m hopeful that we will achieve our growth targets this year. The whole year is four quarters, right? We’re not going to get there in the first quarter. If we do everything right, it’s going to happen progressively,” Go said. 

The government is targeting growth of five to six percent this year.

Based on data from the Philippine Statistics Authority, GDP growth slowed to three percent in the fourth quarter of 2025.

This brought full-year expansion to 4.4 percent, down from 5.7 percent in 2024 and below the government’s 5.5 to 6.5 percent target.

In his speech before insurance industry leaders, Go acknowledged the challenges posed by global uncertainty, geopolitical tensions and domestic shocks, but stressed that these did not undermine the country’s long-term outlook. 

“I assure all of you that the long-term fundamentals of the economy are intact,” he said, adding that the weaker growth in the second half of last year was due to a “confluence of three events,” including global shocks, natural calamities and domestic disruptions.

Go noted that while GDP growth averaged 4.4 percent last year, this remained above global and regional benchmarks.

“Sometimes we get used to the 5.5 percent and we think 4.5 percent is a disaster. I just want to tell you it’s not a disaster. The global average of GDP growth all over the world is only 2.9 percent. The ASEAN average is 3.8 percent. We’re growing at 4.4 percent, so it’s not the end of the world,” he said.

He also cited controlled inflation at 1.7 percent, continued growth in overseas Filipino remittances and a 15-percent increase in exports as indicators of economic resilience.

On government spending, the finance chief said efforts are underway to accelerate disbursements and ensure that funds circulate in the economy. 

Go said the Department of Finance (DOF) recently met with the Department of Budget and Management (DBM). 

“We met this week and we’ve settled the numbers. The DOF has cleared the amount of money that we’re making available to the government for its expenditures,” he said.

According to Go, the meeting included the government’s five biggest spending agencies: the Department of Public Works and Highways, Department of Education, Department of Health, Department of Agriculture and Department of Transportation.

“The top five spenders were all there. We agreed with them what their spending will be and how much money will be released. I’m constantly coordinating with DBM on the release of these funds because we need them to circulate in the economy,” he said.

On the financing side, Go said revenue agencies are expected to meet their collection goals.

“We continue to do what we do. The Bureau of Internal Revenue and the Bureau of Customs have their targets. I’m hopeful we will achieve those targets,” he said. 

Looking ahead, Go reiterated the government’s commitment to fiscal discipline, quality spending and reforms aimed at boosting investor confidence and job creation, saying the economic team “means business” and would stay focused on sustaining growth despite recent setbacks.