The Philippine economy is expected to grow between five and six percent in 2026, the Department of Finance (DOF) said, slightly lower than earlier projections. Outgoing Finance Secretary Ralph Recto explained that slower-than-expected growth and ongoing economic challenges contributed to the revised outlook.
Recto said the Development Budget Coordination Committee (DBCC) is reviewing economic targets for 2026 to 2030, including revenue collection projections. “We’re starting from a low base, so it may take a quarter before growth stabilizes. But our fundamentals are solid,” he said.
Transparency and Accountability Key to Confidence
Recto stressed that winning back consumer and business confidence depends on accountability and transparency. Demonstrating that government institutions are reliable, he said, is critical to restoring trust.
He noted that while concerns over year-end growth remain, there is reason for optimism. The economy is projected to settle at four to five percent in the fourth quarter, bringing full-year GDP growth to 4.7 to 4.8 percent. “Fourth-quarter growth may be lower, but overall next year, we’re looking at growth higher than five percent,” Recto said.
Debt Trends and Leadership Changes
On the fiscal side, Recto assured that the government is not borrowing beyond planned limits, including payments on existing debt. The Bureau of the Treasury reported that the country’s outstanding debt fell for the second straight month in September, dropping to P17.46 trillion, though it remains slightly above the 2025 ceiling of P17.35 trillion.
Recto recently stepped down as finance secretary to become Executive Secretary, with Frederick Go, former special assistant to the president for investment and economic affairs, taking the helm of the Finance Department.
